Ralston Tile produces three types of ceramic tiles, models 45, 51, and 56 from clay,...
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Accounting
Ralston Tile produces three types of ceramic tiles, models 45, 51, and 56 from clay, which is mined in the Arizona desert. Budgeted data for next month follows:
45 51 56
Units produced 3,000 4,500 6,000
Sales value at split-off per unit $15 $18 $24
Additional processing costs per unit $6 $6 $7
Joint production costs per unit $2 $5 $5
Sales value if processed further per unit $20 $22 $32
The joint cost of mining the clay is $80,000. Which of the products should be produced beyond the split-off point?
| Yes Yes Yes | ||
| Yes Yes No | ||
| No Yes Yes | ||
| No No Yes | ||
| Yes No No |
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