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Product X-47 is one of joint products in a joint manufacturing process. Management is studying whether to sell X-47 at split-off point or to process X-47 further into Xylene. The subsequent data have been gathered:
Selling price of X-47
I. Variable cost of processing X-47 into Xylene. II. The preventable fixed costs of processing X-47 into Xylene. III. The selling price of Xylene. IV. The joint cost of process from which X-47 is produced.
Which of above items are relevant in a decision of whether to sell X-47 as is or process it further into Xylene?
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