Question

XYZ Corporation incurs joint processing costs for Product A and Product B. XYZ can either sell Product A and B at the split-off point or process each further. Information about Product A and B follows. Product A Product B Units produced 50,000 40,000 Selling price per unit at split-off $15 $18 Selling price per unit after additional processing $22 $28 Separable variable processing costs beyond split-off $400,000 $300,000 What should XYZ Corp. do with regard to Product A? a. Process beyond split-off b. Sell at the split-off What should XYZ Corp do with regard to Product B? a. Process beyond split-off b. Sell at the split-off

Answer 1

1. Sell the split off

2. Process beyond the split off

Step-by-step explanation:

See attached file