Joint costs of $8,000 are incurred to process X and Y. Upon splitoff, $4,000 and $6,000 in costs are incurred to produce 200 units of X and 150 units of Y, respectively. In order to justify processing further at the splitoff point, revenues for product: a. X must exceed $12,000. b. Y must exceed $14,000. c. X must be greater than $60 per unit. d. Y must be greater than $40 per unit.
Joint costs of $8,000 are incurred to process X and Y. Upon splitoff, $4,000 and $6,000 in costs are incurred to produce 200 units of X and 150 units of Y, respectively. In order to justify processing further at the splitoff point, revenues for product: a. X must exceed $12,000. b. Y must exceed $14,000. c. X must be greater than $60 per unit. d. Y must be greater than $40 per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Joint costs of $8,000 are incurred to process X and Y. Upon splitoff, $4,000 and $6,000 in costs are incurred to produce 200 units of X and 150 units of Y, respectively. In order to justify processing further at the splitoff point, revenues for product:
a. X must exceed $12,000.
b. Y must exceed $14,000.
c. X must be greater than $60 per unit.
d. Y must be greater than $40 per unit.
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