For my final exM

(2.3 . Products A, B, and C are produced from a single raw material input. The raw mat- erial and other production costs up to the split-off point are $100,000, from which 10,000 units of Product A, 15,000 units of Product B, and 10,000 units of Product C can be produced each period. At split-off point, selling prices are as follows: - Product A $2 per unit - Product B $3 per unit - Product C $5 per unit. The Company has been offered the following options: Further processing costs totals | New selling prices are : - Product A $25,000 | $4.75 per unit - Product B $22,500 | $5.00 per unit - Product C $25,000 | $8.00 per unit. 1. Determine:Which products should be sold at split-off and which should be processed further. Show calculations and explain your reasoning. Be Specific! Selling Price at Split-Off + [ Incremental Revenue - Incremental Cost] Net +.'- 2. The company has the option to combine Product A and Product C, at an additional cost of $12,500 to combine M products, and sell the resulting package as a novelty called \" AC2 Bundle\" for $14 per package. Required: As Management Accountant of this company please recommend : Should the company produce and sell the\" AC2 Bundle\"? What is the minimum price at which the AC2 Bundle should be sold. Show calculations and explain. [11 marksle minutes]