WP Corporation produces products X, Y, and Z from a single raw material input in a joint production process. Budgeted

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 1,500 2,000 3,000
Per unit sales value at split-off $19.00 $21.00 $24.00
Added processing costs per unit $7.00 $7.50 $7.00
Per unit sales value if processed further $29.00 $29.00 $30.00
The cost of the joint raw material input is $149,000. Which of the products should be processed beyond the split-off point?

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