A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follow:

Product		Number of Units Produced			Selling Price at Split-off			Selling Price after Processing			Additional Processing Costs
X		5,000			$10.00			$15.00			$14,000
Y		10,000			11.60			16.20			21,000
Z		4,000			19.40			21.60			12,000

(a)

Which product(s) should be processed further and which should be sold at the split-off point?

Product X and ZProduct XProduct Y and ZProduct YProduct ZProduct X and Y should be processed further but Product Y and ZProduct X and ZProduct XProduct ZProduct YProduct X and Y should be sold at the splitoff point.