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WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted data for the next month is as follows:
Product X Product Y Product Z
Units produced 1,900 2,400 3,400
Per unit sales value at split-off $17.00 $21.00 $19.00
Added processing costs per unit $2.00 $4.00 $4.00
Per unit sales value if processed further $22.00 $22.00 $27.00
The cost of the joint raw material input is $72,000.
Which of the products should be processed beyond the split-off point?
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WP Corporation produces products X, Y, and Z from a single raw material input in a joint production...
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