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Bahrat, Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split- off point or
Bahrat, Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher price. The cost and selling price data for a recent period are as follows: Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 12 $50,900 $100,100 $189.800 Product 14 10.400 30.800 34,600 Product 16 59,100 149.100 219.000 (a) Your answer is correct. Determine the total net income if all products are sold at the split-off point. Total net income $ 20300 e Textbook and Media Attempts: 1 of 3 used (b) Your answer is correct. Determine the total net income if all products are sold after further processing. Total net income $ 63300 e Textbook and Media Attempts: 1 of 3 used (c) Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g.-15,000 or parenthesis, eg. (15,000).) Incremental Profit/(Loss) Decision Product 12 $ Product 14 $ Product 16 $
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