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Bermuda Triangle Corporation Has a Joint Process That Produces Three

Question 83

Multiple Choice

Bermuda Triangle Corporation has a joint process that produces three products: X, Y, and Z.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $100,000.Other relevant data are as follows:  Separable  Processing  Sales Value  Costs after  Sales Value  Product at Split-off  Split-off  at Completion X$128,000$16,000$160,000Y50,00026,00076,000Z25,60020,00040,000\begin{array}{rlc} && \text { Separable } & \\&& \text { Processing } & \\&\text { Sales Value } & \text { Costs after } & \text { Sales Value } \\\text { Product } & \text {at Split-off } & \text { Split-off } & \text { at Completion }\\\mathrm{X} & \$ 128,000 & \$ 16,000 & \$ 160,000 \\\mathrm{Y} & 50,000 & 26,000 & 76,000 \\\mathrm{Z} & 25,600 & 20,000 & 40,000\end{array} To maximize profits, Bermuda Triangle Corporation should process _____ further.


A) product Z only
B) product Y only
C) product X only
D) products X, Y, and Z

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