Bill Inc. produces three separate products from a common process costing $101,000. Each of the products can be sold at the split-off point or can be processed further and sold for a higher price. Shown below are the cost and selling price data for a recent period.

	Sales Value at split-off point	cost to process further	sales value after further processing
Product 10	60,900	110,500	189,100
Product 12	15,200	30,500	34,700
Product 14	54,700	150,900	215,000

1. Determine total net income if all products are sold at the split-off point.

Net income = $ ?

2. Determine total net income if all products are sold after further processing.

Net income = $ ?

3. Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Product	Incremental Profit(loss)	Decision *
Product 10	$
Product 12	$
Product 14	$

Decision* = if should be processed further OR if should be sold at the split-off point.

4. Determine total net income using the results from previous part.

Net income = $ ?

5. Is the net income different from that determined in part (b) ?

Yes/no, net income is increasing/decreasing by $ ?