A company produces two joint products (X and Y) from one unit of raw materials, which costs P5,000. Conversion costs incurred in the joint manufacturing process amount to P10,000. The two products can be sold at the split-off point or they can be processed further and sold at a higher price. The sales values of the two products are: Product X Sales Value at the Split-off Point P1,000 800 Sales Value after Further Processing P1,900 1,500 Product Y The additional processing costs is P750 per unit for both Products X and Y. If the objective is to maximize profit, which product should the company process beyond the split-off point? a. Product X only b. Product Y only c. Both Products X and Y d. Neither Product X nor Product Y
