Additional information relating to the production of


A company produces two products in a joint process, Z8 and W9. The cost of producing Z8 and W9 is $3920 per batch. Additional information relating to the production of products Z8 and W9 is given below:

Z8

W9

Number of units

600

335

Selling price per unit at the split off point

$8.00

$12.09

Product W9 can be processed further into product W10 at a cost of $996. Product W10 can then be sold for $27.50 per unit.How many units of W10 does the company have to sell to justify the further processing of W9?

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Business Management: Additional information relating to the production of
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