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Pharoah Inc. produces three separate products from a common process costing $100,600. Each of the products can be sold at the split-off point or can
Pharoah Inc. produces three separate products from a common process costing $100,600. 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 Cost to Sales Value at Split-Off Process after Further Point Further Processing Product 10 $59,300 $100,500 $190,500 Product 12 15,600 29,100 34,100 Product 14 54,500 150,700 214,100 Determine total net income if all products are sold at the split-off point. Net income X x Your answer is incorrect. Try again. Determine total net income if all products are sold after further processing. X Net income x Your answer is incorrect. Try again. 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 x Product 10 Product 12 Product 14 x Your answer is incorrect. Try again. Determine total net income using the results from previous part. X Net income Is the net income different from that determined in part (b)? X net income is by $
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