Answer:
yes yes NO ( A )
Explanation:
products X,Y,Z
units produced : X = 1500 , Y = 2000, Z = 3000
per unit sales value at split-off : X = $19, Y = $21, Z = $24
Added processing costs per unit : X = $7, Y = $7.50 , Z = $7
per unit sales value if processed further : X = $29, Y = $29, Z = $30
COST OF JOINT MATERIAL INPUT = $149000
To check for products to be processed further we apply
(unit sales value if processed further - per unit sales value at split-off ) - ( added processing cost )
for product X = $29 - $19 - $7 = $3
for product Y = $29 - $21 - $7.5 = $0.50
for product Z = $30 - $24 - $7 = - $1 ( negative value )
products to be processed beyond the split of point would be : X Y
because Z has a negative contribution margin
