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Exercise 12-10 Indigo Inc. produces three separate products from a common process costing $100,200. Each of the products can be sold at the split-off point
Exercise 12-10 Indigo Inc. produces three separate products from a common process costing $100,200. 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. Product 10 Product 12 Product 14 Sales Value at Split-Off Point $61,000 15,000 54,000 Cost to Process Further $100,100 29,100 149,800 Sales Value after Further Processing $190,000 34,700 214,900 Determine total net income if all products are sold at the split-off point. Net income Determine total net income if all products are sold after further processing. Net income 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 e.g. -45 or parentheses e.g. (45).) Incremental profit (loss) Decision Product Product 10 Product 12 Product 14 Determine total net income using the results from previous part. Net income Is the net income different from that determined in part (b)? net income is by $
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