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. OC. X must be greater than $60 per unit. D. Y must be greater than $40 per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Vikram 

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.
O D. Y must be greater than $40 per unit.
Transcribed Image Text: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. O D. Y must be greater than $40 per unit.
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