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I submitted chapter 7 part 1 and it was solved already , however part 2 and part 3 needs to be solved now . I
I submitted chapter 7 part 1 and it was solved already , however part 2 and part 3 needs to be solved now .
I uploaded the answer that Chegg gave me for part 1 because I did not know if you all needed part 1 to solve part 2 and part 3
Intune Global Corp. has a joint process that produces three separate products: Product A, Product B and Product C. Each product may be sold at split-off or processed further and then sold. Joint processing costs for a year amount to $90,000. Other relevant data are as follows: Required: a) Determine total net income if all products are sold after processing 3 Marks b) Using incremental analysis determine which products in this division of Intune Global should be sold at split-off point and which should be processed further. 6 Marks Step-by-step Step 1/2 Explanation: Please refer to this step for solution. 1): Calculation of Total net income: Sale value =190000+35000+215000=$440,000 Cost after split off = 110000+50000+125000=$285,000 Explanation: Please refer to this step for solution. 2): Incremental Analysis: Product B should be sold at a split-off point and Product A \& Product C should be processed further. 1): Total Net Income is $65,000. roduct B should be sold at a split-off point roduct A \& Product C should be processed ner. Product B should be sold at a split-off point and Product A \& Product C should be processed further. 1): Total Net Income is $65,000. 2): Product B should be sold at a split-off point and Product A \& Product C should be processed further. Thank you, please upvote if you are satisfied with the answer:) Was this answer helpful? ost a question Your toughest questions, solved step-by-step. Part 2 9 MARKS Intune has discovered that a small fitting unit it now manufactures at a total cost of $1.00 per unit could be bought elsewhere for $0.87 per unit. Intune needs 460,000 of these units each year. The variable cost of the small fitting unit is $0.80 per unit. Fixed costs amount to $92,000 annually. If the unit is purchased, Intune can avoid fixed costs of $23,000 annually. If Intune decides to buy rather than produce the small fitting, it can devote the machinery and labor to making a timing unit it now buys from another company, saving the company $10,000. Required: Given the information above: a) Without considering the possibility of making the timing unit, evaluate whether Intune should buy or continue to make the small fitting. 6 Marks b) Considering the possibility of making of the timing unit (opportunity cost), would your decision from a) change? 3 Marks Part3 15 MARKS Last year Intune installed new factory equipment. The company's Senior Production Manager recently returned from an industry equipment exhibition where he watched computerized equipment demonstrated. He was impressed with the equipment's speed and cost efficiency. Upon returning from the exhibition, he asked the company's purchasing agent to collect price and operating cost data on the new equipment. In addition, he asked the company's accountant to provide him with cost data on the company's current equipment. This information is presented below: If the old equipment is replaced now, Intune will be able to sell it for $150,000. Required: a) Determine any gain or loss if the old equipment is replaced. 5 Marks b) Using incremental analysis, determine if the old equipment should be replaced. 10 MarksStep by Step Solution
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