Ottawa Ltd -Refer to Figure 6-12

Multiple Choice

Ottawa Ltd. produces two products from a joint process. Information about the two joint products is as follows: $\begin{array}{lcc}&\text { Product } & \text { Product } \\&\mathrm{X} & \mathrm{Y}\\ \text { Anticipated production (in kgs) } & 2,000 &4,000\\ \text { Selling price per kg at split-off } & £ 30& £16 \\\text { Additi onal processing costs per } \mathrm{kg} \\\text { after split-off (all variable) } & £ 15& £30 \\\text { Selling price per kg after } & \\\text { further processing }&£40&£50 \end{array}$
-Refer to Figure 6-12. Which of Ottawa's joint products should be processed further?

A) Product X only
B) Product Y only
C) both Product X and Product Y
D) neither Product X nor Product Y