Question
Stahl 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
Stahl 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 at Split-Off Point Cost to Process Further Sales Value after Further Processing Product 10 $59,400 $100,900 $191,000 Product 12 15,100 30,100 34,200 Product 14 54,300 150,200 214,400 Determine total net income if all products are sold at the split-off point. Net income $ Determine total net income if all products are sold after further processing. Net income $ 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 Product 10 $ Product 12 $ Product 14 $ Determine total net income using the results from previous part. Net income $ Is the net income different from that determined in part (b)? , net income is by $
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