Problem 8 (10 Points) - L05 Nabila Company manufactures three products from a common input...
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Problem 8 (10 Points) - L05 Nabila Company manufactures three products from a common input in joint processing operation. Joint processing cost ups to the split-off point total $700,000 per quarter. The company allocates these costs to the joint products on the basic of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as following Product Selling Price Quarterly Output 16,000 units 21,000 units $ 50 5,000 units XX YY ZZ $32 $16 Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing cost [per quarter] and unit selling price after further processing are given below: Further Production cost Ultimate Selling Price XXS 90,000 $ 40 per unit YY|$ 70,000 $ 20 per unit ZZ $ 80,000 $ 60 per unit Required: Which product or products should be sold at the split-off point and which product or products should be processed further? Show computation and give your explanation of the result! (10 Points)
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