Cleveland Corporation Has a Joint Process That Produces Three Products

question 53

Multiple Choice

Cleveland Corporation has a joint process that produces three products: X,Y and Z.Each product may be sold at split-off or processed further and then sold.Joint-processing costs for a year amount to $100,000.Other data follows:
$\begin{array}{llll}&\text { Sales Value }&\text {Separable Processing }&\text {Sales Value }\\ \text {Product }&\text {at Split-Off}&\text {Costs after Split-Off }&\text { at Completion}\\X&\$ 128,000 & \$ 16,000 & \$ 140,000 \\Y&50,000 & 27,000 & 76,000 \\Z&25,600 & 10,000 & 40,000\end{array}$
To maximize profits,the corporation should process ________ further.

• A) Product Z only
• B) Product Y only
• C) Product X only
• D) Products X, Y and Z

---

Definitions:

Graphite

A soft, black, greasy-feeling carbon mineral.

Negative Charge

An electrical charge that results from an excess of electrons, giving the particle or object a net negative electric charge.

Electrons

Negatively charged subatomic particles that orbit an atom's nucleus, playing a key role in chemical reactions and electricity.

Covalent

Covalent refers to a type of chemical bond where atoms share pairs of electrons to achieve a full outer shell and stability.