Question
Shamrock, Inc. produces three separate products from a common process costing $100,100. Each of the products can be sold at the split-off point or can
Shamrock, Inc. produces three separate products from a common process costing $100,100. 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:
Sales Value at Split-Off Point | Cost to Process Further | Sales Value after Further Processing | ||||||||
Product 12 | $50,900 | $100,100 | $189,800 | |||||||
Product 14 | 10,400 | 30,800 | 34,600 | |||||||
Product 16 | 59,100 | 149,100 | 219,000 |
Determine the total net income if all products are sold at the split-off point.
Total net income | $enter the total net income in dollars |
Question Part Score
--/2
Determine the total net income if all products are sold after further processing.
Total net income | $enter the total net income in dollars |
Question Part Score
--/3
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 | $enter a dollar amount | select an option Should be processed further Should be sold at the split-off point | |||
Product 14 | $enter a dollar amount | select an option Should be processed further Should be sold at the split-off point | |||
Product 16 | $enter a dollar amount | select an option Should be processed further Should be sold at the split-off point |
Question Part Score
--/6
Determine the total net income using the results from the previous part of the question.
Total net income | $enter the total net income in dollars |
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