The Freed Company Produces Three Products,X,Y,and Z from a Single

question 53

Multiple Choice

The Freed Company produces three products,X,Y,and Z from a single raw material input.Product Y can be sold at the split-off point for total revenues of $50,000 or it can be processed further at a total cost of $16,000 and then sold for $68,000.Product Y

• A)should be sold at the split-off point,rather than processed further.
• B)would increase the company's overall net income by $18,000 if processed further and then sold.
• C)would increase the company's overall net income by $68,000 if processed further and then sold.
• D)would increase the company's overall net income by $2,000 if processed further and then sold.