2.A company purchases raw materials worth Rs.11.04 lakhs and processes them into four products, P, Q, R and S, which have a unit sales value of Rs.3, Rs.9, Rs.16 and Rs.60 respectively at split-off point, as they could be sold as such to other processors. However, during a year, the company decided to further process and sell products P, Q and S while R was not be processed further but sold at split off point to other processors. The processing of raw materials into the four products cost Rs.28 lakhs to the company. The other data for the year were as under: Product Output (Units) Sales Ral Additional Processing costs after split of Allaratecostal 1000000 20.000 10.000 2.40 You are required to work out the following information for managerial decision- making. 1] If the joint costs are allocated amongst the four products on the basis of 'Net Realizable Value' at split off point, Product Output (Units) Sales IR! Additional Processing costs after split oft All variable costa P 46 12 1000.000 20,000 10.000 150 You are required to work out the following information for managerial decision- making. l] If the joint costs are allocated amongst the four products on the basis of 'Net Realizable Value' at split off point, what would be the company's annual income? Il] If the company had sold off all other three products at split off stage, identify the increase/ decrease in the company's annual income as compared to Tabove. Ill] What sales strategy could the company have planned to maximize its profit in the year? [V] Identify the net increase in income if the strategy at III is adopted, as compared to l above 2.A company purchases raw materials worth Rs.11.04 lakhs and processes them into four products, P, Q, R and S, which have a unit sales value of Rs.3, Rs.9, Rs.16 and Rs.60 respectively at split-off point, as they could be sold as such to other processors. However, during a year, the company decided to further process and sell products P, Q and S while R was not be processed further but sold at split off point to other processors. The processing of raw materials into the four products cost Rs.28 lakhs to the company. The other data for the year were as under: Product Output (Units) Sales Ral Additional Processing costs after split of Allaratecostal 1000000 20.000 10.000 2.40 You are required to work out the following information for managerial decision- making. 1] If the joint costs are allocated amongst the four products on the basis of 'Net Realizable Value' at split off point, Product Output (Units) Sales IR! Additional Processing costs after split oft All variable costa P 46 12 1000.000 20,000 10.000 150 You are required to work out the following information for managerial decision- making. l] If the joint costs are allocated amongst the four products on the basis of 'Net Realizable Value' at split off point, what would be the company's annual income? Il] If the company had sold off all other three products at split off stage, identify the increase/ decrease in the company's annual income as compared to Tabove. Ill] What sales strategy could the company have planned to maximize its profit in the year? [V] Identify the net increase in income if the strategy at III is adopted, as compared to l above