Stahl Inc. produces three separate products from a common process costing $100,000. 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 here are cost and selling price data for a recent period.

	Sales Value at Split-Off Point		Cost to Process Further		Sales Value after Further Processing
Product 10	$60,000		$100,000		$190,000
Product 12	15,000		30,000		35,000
Product 14	55,000		150,000		215,000

Instructions

1. Determine total net income if all products are sold at the split-off point.
2. Determine total net income if all products are sold after further processing.
3. Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further.
4. Determine total net income using the results from (c) and explain why the net income is different from that determined in (b).

Determine whether to sell or process further, joint products.