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(10 minutes) Yogurt Delight manufactures three products using the same production process. The costs incurred up to the split off point are $200,000. The number
(10 minutes) Yogurt Delight manufactures three products using the same production process. The costs incurred up to the split off point are $200,000. The number of units produced, the selling prices per units of the 3 products at the split off point and after further processing, and the additional processing costs are as follows: Product # of units Selling price at Selling price after Additional produced split off processing processing costs 3,000 $10.00 $15.00 $14,000 6,000 $11.60 $16.20 $16,000 $19.40 $21.60 $9,000 A IB C 2,000 Using incremental analysis, which product(s) should the company process further, and which should it sell at the split off point? 1) Product A FURTHER 2) Product B FURTHER 3) Product C SPLIT OFF - 4) Are joint costs relevant? YES Using incremental analysis, what is the net income to the company for the decisions you made above. 6) For Product AS 7) For Product BS
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