Wright company produces products i j and k from a single

Question

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	$4
Per unit sales value if processed further	$26	$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?

 

	Product I	Product J	Product K
A)	yes	yes	no
B)	yes	no	yes
C)	no	yes	no
D)	no	yes	yes

Option B

Option C

Option D

Option A