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E7-10 Stah Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or
E7-10 Stah Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed fur ther 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 $60,000 15,000 55,000 Sales Value after Further Cost to Process Further Processing $100,000 190,000 Product 10 Product 12 Product 14 30,000 150,000 35,000 215,000 Instructions (a) Determine total net income if all products are sold at the split-off 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 split-off 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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