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E7-10B Marvel, Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point
E7-10B Marvel, 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 Cost to Process Sales Value After Further Product 10 Point $60,000 Further $ 95,000 Processing- $200,000 Product 15 5,000 40,000 Product 20 70,000 160,000 50,000 210,000 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.
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