A company manufactures three products using the same production process. The costs incurred up to the split-off point are $201,900. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows.

ProductNumber of

Units ProducedSelling Price

at Split-OffSelling Price

after ProcessingAdditional

Processing CostsD4,54010.2914.8514,642E6,41011.3915.8420,874F1,75019.7722.237,625Determine the incremental profit (loss) of each product(s).

(a)

Product DProduct EProduct FIncremental profit (loss)(b)

Which product(s) should be processed further and which should be sold at the split-off point?

(Please include formulas for anwsers)