Jordan Corporation produces Products X and Y from a single input in a joint production process. Total joint processing costs are $200,000.
Units produced
Per unit sales value at split-off
Per unit sales value if processed further
Total costs to process further
Product X
2,000
$ 48.00
$ 55.00
$ 20,000
Product Y
2,000
$ 52.00
$ 70.00
$ 38,000
Based on the information above, which of the products should be processed further?
a. Product X Product Y
Yes Yes
b. Product X Product Y
Yes No
c. Product X Product Y
No Yes
d. Product X Product Y
No No