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Determine total net income using the results from previous part. Computation of Net Income : Incremental profit/(loss) = 29,800 - 11,100 + 10,900 = 29,600
Determine total net income using the results from previous part. Computation of Net Income : Incremental profit/(loss) = 29,800 - 11,100 + 10,900 = 29,600 is WRONG!
Difference in income = 70,400 - 59,300 = 11,100 is WRONG!
Please is help to answer on (d)
Blossom Inc. produces three separate products from a common process costing $100,300. 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. Cost to Process Further Sales Value at Split-Off Point $59,400 15,000 $100,900 Product 10 Product 12 Product 14 Sales Value after Further Processing $190,100 34,000 215,900 30.100 55,600 149,400 (a) Your answer is correct. Determine total net income if all products are sold at the split-off point. Net income $ $ 29,700 Determine total net income if all products are sold after further processing, Net income 59,300 e Textbook and Media Attempts: 1 of 3 used (c) Your answer is correct. 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 eg. (45).) Product Incremental profit (loss) Decision Product 10 $ 29,800 should be processed further Product 12 $ $ $ (11.100) Should be sold at the split-off point Product 14 10,900 Should be processed further e Textbook and Media Attempts: 1 of 3 used (d) Your answer is partially correct. Determine total net income using the results from previous part. Net income $ 29,600 Is the net income different from that determined in part (b)? Yes net income is higher by $ 11.100Step by Step Solution
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