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A company produces two products in a joint process, Z8 and W9. The cost of...

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Accounting

A company produces two products in a joint process, Z8 and W9. The cost of producing Z8 and W9 is $3881 per batch. Additional information relating to the production of products Z8 and W9 is given below:

Z8

W9

Number of units

600

340

Selling price per unit at the split-off point

$8.00

$13.10

Product W9 can be processed further into product W10 at a cost of $940. 340 units of W9 will produce 203 units of W10, which can then be sold for $24.17 per unit.

What is the incremental benefit of processing further?

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