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Lilybird Inc. produces two products from a common process. Joint costs are $100,900. Each of the products can be sold at the split-off point or
Lilybird Inc. produces two products from a common process. Joint costs are $100,900. Each of the products can be sold at the split-off point or can be process further and then sold for a higher price. The cost and selling price data for a recent period is as follows: Sales Value at Split-off Cost to Sales Value Process after Further Point Further Processing Product A $49,200 $100,900 $190,200 Product B $10,600 $29,800 $35,600 Using the above information answer the following questions. Using incremental analysis, should Product A be sold at the split-off point or processed further and then sold? Input the letter A if it should be sold at the split-off point. Input the letter B if it should be processed further and then sold. Would operating income increase or decrease if Product A was process further? Enter the letter A for increase. Enter the letter B for decrease. By how much will operating income increase or decrease by if Product A was process further? Enter your answer as a positive number even if operating income would decrease
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