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Part C 10 Marks In yet another division, Milles Fleurs Inc. has a joint process that produces three separate products: Product A, Product B and
Part C 10 Marks In yet another division, Milles Fleurs Inc. 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: Sales Value Product Sales Value at Split-Off $ Costs after Split-Off $ at Completion $ ABC 60,000 110,000 190,000 15,000 50,000 35,000 55,000 125,000 215,000 Required: a. Determine total net income if all products are sold at split-off point. (2 Marks) b. Determine total net income if all products are sold after processing. (3 Marks) c. Using incremental analysis determine which products in this division of Milles Fleurs should be sold at split-off point and which should be processed further
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