Davidian Company Uses a Joint Process to Produce Products W

Multiple Choice

Davidian Company uses a joint process to produce products W, X, Y, and Z. Each product may be sold at its split-off point or processed further. Additional processing costs of specific products are entirely variable. Joint processing costs for a single batch of joint products are $120,000. Other relevant data are as follows: Which products should Davidian process further?

A) all
B) none
C) all except Z
D) X and Y