XYZ Company makes two products, W and P, in a joint process. Atthe split-off point, 45,000 units of Product W and 70,000 units ofProduct P are available each month. Monthly joint production coststotal $184,000 and are allocated to the two products equally.Product W can either be sold at the split-off point for $6.10 perunit or it can be processed further and then sold for $8.80 perunit. If Product W is processed further, additional processingcosts of $3.20 per unit will be incurred. Product P can also besold either at the split-off point for $4.25 per unit or it can beprocessed further and then sold for $7.60 per unit. If Product P isprocessed further, additional processing costs of $2.90 per unitwill be incurred. However, the further processing of Product P willresult in a loss of 6,000 units (i.e., only 64,000 units of ProductP will be available for sale if it is processed further). Thefurther processing of Product W will not result in the loss of anyunits. Assume XYZ Company makes all the correct sell or processfurther decisions. Calculate the amount of net income reported byXYZ Company last month.
