Oriole Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split- off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period. Sales Value at Split-Off Cost to Process Point Further Sales Value after Further Processing Product 10 $60,800 $100,900 $190,500 Product 12 15,200 30,400 35,600 Product 14 55,600 150,400 214,000 Determine total net income if all products are sold after further processing. Net income $ Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product Incremental profit (loss) Decision Product 10 Product 12 Product 14 A 28,800 Should be processed further 8,000 Should be sold at the split-off point Should be processed further Determine total net income using the results from previous part. Net income GA $ Is the net income different from that determined in part (b)? Yes , net income is higher by $

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