Hello Please help answer these questions:

Please show any calculations:

When deciding whether to sell or process a product further, a manager should determine whether the incremental revenue from further processing is greater than the incremental cost from further processing. If the incremental revenue exceeds the incremental cost, then the product should be processed further. Joint costs (costs incurred prior to the split-off point) are NOT relevant when determining what to do after the split-off point.

Watch the video and then attempt these questions: Sell or Process Further: https://www.youtube.com/watch?v=5bwD-jhZVHU (may have to copy this link to your URL)

Joe Companys market for the Model 64 has changed significantly, and Joe has had to drop the price per unit from $265 to $125. There are some units in the work in process inventory that have costs of $150 per unit associated with them. Joe could sell these units in their current state for $100 each. It will cost Joe $10 per unit to complete these units so that they can be sold for $125 each.

1) Which of the following is not a relevant value in this problem?

A. $265 = former price

B. $125 = current price

C. $100 = price for partially completed units

D. $10 = cost to complete units

2) When the incremental revenues and expenses are analyzed, the company is better off by

A. $125 per unit if they complete the units.

B. $15 per unit if they complete the units.

C. $10 per unit if the sell the units in their current state.

D. $25 per unit if they sell the units in their current state.

3) A new employee looks at the analysis and exclaims, Well lose money with either of these alternatives! Lets just throw these units in the trash! What effect will that option have on net income?

A. It will have no effect on net income.

B. Net income will decrease by $265 per unit for each unit discarded.

C. Net income will decrease by $150 per unit for each unit discarded.

D. Net income will increase by $35 per unit for each unit discarded.