Wp corporation produces products x, y, and z from a single raw material input in a joint production process. budgeted data for the next month is as follows:

product x product y product z

units produced 1,600 2,100 3,100

per unit sales value at split-off $ 14.00 $ 19.00 $ 16.00

added processing costs per unit $ 5.00 $ 7.00 $ 7.00

per unit sales value if processed further $ 20.00 $ 20.00 $ 25.00

the cost of the joint raw material input is $69,000. which of the products should be processed beyond the split-off point?

product x product y product z

a) yes yes no

b) yes no yes

c) no yes no

d) no yes yes

multiple choice

choice a

choice b

choice c

choice d

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500