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Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month follows:
Product I
Product J
Product K
Units produced
2,100
2,600
3,600
Per unit sales value at split-off
$19
$25
$21
Added processing costs per unit
$2
$4
Per unit sales value if processed further
$26
$31
If the cost of the raw material input is $74,000, which of the products should be processed beyond the split-off point?
A)
yes
no
B)
C)
D)
Option B
Option C
Option D
Option A
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