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Cullumber Inc. produces three separate products from a common process costing $ 100,600. Each of the products can be sold at the split-off point or
Cullumber Inc. produces three separate products from a common process costing $ 100,600. 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. Sales Value at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $ 59,400 $ 100,900 $191,000 Product 12 15,100 30,100 34,200 Product 14 54,300 150,200 214,400 Your answer is correct. Determine total net income if all products are sold at the split-off point. Net income $ 28200 X Your answer is incorrect. Determine total net income if all products are sold after further processing. Net income $ 439600 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 0.8-45 or parentheses eg. (451) Product Product 10 Incremental profit (loss) $ Decision Should be processed further Product 12 $ $ $ $ Should be sold at the split-off point Product 14 Should be processed further Determine total net income using the results from previous part. Net income $ Is the net income different from that determined in part (b)? Yes.net income is higher by $
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