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Carla Vista Inc. produces three separate products from a common process costing $100,200. Each of the products can be sold at the split-off point or
Carla Vista Inc. produces three separate products from a common process costing $100,200. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Product 10 Product 12 Product 14 Sales Value at Split-Off Point $59,900 15,500 56,000 Cost to Process Further $100,000 30.900 150,900 Sales Value after Further Processing $190,200 34,700 216,000 Determine total net income if all products are sold at the split-off point. Net income $ eTextbook and Media Determine total net income if all products are sold after further processing Net income $ 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 eg.-45 or parentheses e.g. (45).) Incremental profit (loss) Decision Product Product 10 $ Product 12 $ Product 14 $ eTextbook and Media Determine total net income using the results from previous part. Net income $ Is the net income different from that determined in part (b)? net income is by $
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