Answer:
We will only produce further product Y and Z
Explanation:
We should check the increase in sales revenue with the increase in cost to know if further process acheive a gain:
<u>Product X</u>
Increase in sales value:
348,000 - 340,000 = 8,000
Additional Cost: <u> (38,000) </u>
difference: (30,000) Non-profitable
<u>Product Y</u>
Increase in sales revenue:
185,000 - 150,000 = 35,000
additional cost: <u> (30,000) </u>
difference: 5,000 Profitable
<u>Product Z</u>
Increase in sales revenue:
147,000 - 110,000 = 37,000
additional cost: <u> (22,000) </u>
difference: 15,000 Profitable
