Copeland Inc

Multiple Choice

Copeland Inc. produces product X-547 in a joint manufacturing process. The company is studying whether to sell X-547 at the split-off point or upgrade (i.e., further process) the product to become Xylene. The following information has been gathered:

(1) Selling price per pound of X-547.
(2) Variable manufacturing costs of the upgrade process.
(3) Avoidable fixed costs of the upgrade process.
(4) Selling price per pound of Xylene.
(5) Joint manufacturing costs to produce X-547.

Which of the items should be reviewed when making the upgrade decision?

A) 1, 2, and 4
B) 1, 2, 3, and 4
C) 1, 2, 3, 4, and 5
D) 1, 2, 4, and 5
E) 2, 3