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Problem 7.41A b A company manufactures three products using the same production process. The costs incurred up to the split-off point are $188,400. These costs
Problem 7.41A b A company manufactures three products using the same production process. The costs incurred up to the split-off point are $188,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows: Number of Units Produced Selling Price at Split-Off Additional Processing Costs Product A Selling Price after Processing $15.50 16.90 21.10 2,700 5,600 2,100 $10.00 11.80 B $12,950 18,560 5,720 19.90 (b) Which product(s) should the company process further and which should it sell at the split-off point? (Enter decrease in profit with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).) B Incremental revenue $ $ Incremental cost Increase (decrease) in profit $ $ Product A should be Product B should be Product C should be
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