Pharoah , Inc. produces three separate products from a common process costing $ 100,200 . Each of the products can be sold at the split - off point or can be processed further and then sold for a higher price . The cost and selling price data for a recent period are as follows : 4 Sales Value at Cost to Process Further Split - Off Point Sales Value after Further Processing Product 12 $ 49,000 \$100,200; \$189,600 Product 14 10,400 29,400 34, 400 Product 16 61,000 150,100 219,200 ( a ) Determine the total net income if all products are sold at the split - off point . Total net income $.

b) Using incremental analysis , determine which products should be sold at the split - off point and which should be processed further . ( If an amount reduces the net income then enter with a negative sign preceding the number , e.g. -15,000 or parenthesis , e.g. ( 15,000 ) . ) Incremental Profit / ( Loss ) Decision Product 12 $ Product 14 $ Product 16 $