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LanaTech Produces Three Products, X, Y, and Z, from Recycled

Question 79

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LanaTech produces three products, X, Y, and Z, from recycled paper.Budgeted data for next month follows: XYZ Units produced 8002,4001,600 Sales value at split-off per unit $6$15$12 Additional processing costs per unit $1$4$5 Joint production costs per unit $2$6$4 Sales value if processed further per unit $9$20$16\begin{array}{lrrr}&X&Y&Z\\\text { Units produced }&800&2,400&1,600\\\hline \text { Sales value at split-off per unit } & \$ 6 & \$ 15 & \$ 12 \\\text { Additional processing costs per unit } & \$ 1 & \$ 4 & \$ 5 \\\text { Joint production costs per unit } & \$ 2 & \$ 6 & \$ 4 \\\text { Sales value if processed further per unit } & \$ 9 & \$ 20 & \$ 16\end{array} The joint cost of the recycled paper is $110,000.Which of the products should be produced beyond the split-off point? XYZ\quad\underline{X} \quad\quad \underline{Y} \quad\quad \underline{Z}
A.  No  Yes  Yes \text { No } \quad \text { Yes } \quad \text { Yes }
B.  Yes  YesNo \text { Yes } \quad \text { Yes\quad No }
C.  No  No  No \text { No } \quad \text { No } \quad \text { No }
D.  No Yes No \text { No \quad Yes \quad No }

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