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E 7 - 1 0 : Stahl Inc. produces three separate products from a common process costing $ 1 0 0 , 0 0 0
E: Stahl Inc. produces three separate products from a common process costing $ Each of the products can be sold
at the splitoff point or can be processed further and then sold for a higher price. Shown below are the cost and selling price
data for a recent period.
a Determine total net income if all products are sold at the splitoff point.
b Determine total net income if all products are sold after further processing.
c Using incremental analysis, determine which products should be sold at the splitoff point and which should be processed further.
d Determine total net income using the results from c and explain why the net income is different from that determined in b
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