Mitchener Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $860,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point.

Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product (on an annual basis) are:

	Product	Sales Value at Split-Off	Further Processing Costs	Sales Value After Further Processing
	M	$350,000	$ 90,000	$420,000
	N	185,000	60,000	260,000
	P	325,000	115,000	450,000

The "Further Processing Costs" consist of variable and avoidable fixed costs. INSTRUCTIONS Determine which product or products should be sold at the split-off point, and which product or products should be processed further? When complete, answer each of the following by selecting the correct match from the list provided.

- A. B. C. D. E. F. G.	What is the incremental revenue for Product M?
- A. B. C. D. E. F. G.	What is the incremental income (loss) for Product M?
- A. B. C. D. E. F. G.	What is the incremental revenue for Product N?
- A. B. C. D. E. F. G.	What is the incremental income (loss) for Product N?
- A. B. C. D. E. F. G.	What is the incremental revenue for Product P?
- A. B. C. D. E. F. G.	What is the incremental income (loss) for Product P?
- A. B. C. D. E. F. G.	Which of the product or products, should be processed further?

A.	$10,000
B.	$70,000
C.	$125,000
D.	$75,000
E.	$15,000
F.	N and P
G.	$(20,000)