WP Company Produces Products X,Y,and Z from a Single Raw

question 27

Multiple Choice

WP Company produces products X,Y,and Z from a single raw material input in a joint production process.Budgeted data for the next month is as follows:
$\begin{array}{|l|r|r|r|}\hline&X&Y&Z\\\hline \text { Units Produced } & 1,500 & 2,000 & 3,000 \\\hline \text { Per Unit Sales Value at Split-Off } & \$ 19 & \$ 21 & \$ 24 \\\hline \text { Added Processing Costs per Unit } & \$ 7 & \$ 7.50 & \$ 7 \\\hline \text { Per Unit Sales Value if Processed Further } & \$ 29 & \$ 29 & \$ 30\\\hline\end{array}$
The cost of the joint raw material input is $149,000.Which of the products should be processed beyond the split-off point?
$$\begin{array} { | l | l | l | l | } \hline & \mathbf { X } & \mathbf { Y } & \mathbf { Z } \\\hline \text { A) } & \text { Yes } & \text { Yes } & \text { No } \\\hline \text { B) } & \text { No } & \text { Yes } & \text { No } \\\hline \text { C) } & \text { Yes } & \text { No } & \text { Yes } \\\hline \text { D) } & \text { No } & \text { Yes } & \text { Yes } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Autonomy

The right or condition of self-government, in personal decision-making, implying the capacity to make an informed, uncoerced decision.

Utilitarianism

A theory in ethics that prescribes actions that maximize happiness and well-being for the majority of a population.

Responsibility

The duty or obligation to perform or complete a task, often with the implication of accountability for the outcome.

Justice

The concept of fair and equal treatment for all, as well as the administration of law.