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Current Attempt in Progress Indigo, Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the
Current Attempt in Progress Indigo, 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 $189,200 Product 14 10,600 29,400 34,600 Product 16 59,100 150,700 220,300 Determine the total net income if all products are sold at the split-off point. Total net income $ eTextbook and Media Total net income $ eTextbook and Media 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, e.g. (15,000).) Incremental Profit/(Loss) Product 12 Product 14 $ Product 16 $ eTextbook and Media Decision Product 14 $ SA Product 16 $ eTextbook and Media Determine the total net income using the results from the previous part of the question. Total net income eTextbook and Media
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