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Superior Company manufactures three products using the same production process: tables, benches, and planters. The costs incurred up to the split-off point are $250,000. These

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Superior Company manufactures three products using the same production process: tables, benches, and planters. The costs incurred up to the split-off point are $250,000. 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 units at each point in production, and the additional processing costs are as follows: Additional Product Number of Units Selling Price at Selling Price After Processing Produced Split-Off Processing Costs tables 4500 $11.00 $15.50 $11,000 benches 6000 $14.00 $16.20 $16,500 planters 1500 $18.50 $26.00 $8,000 Paragraph BIE 1) Which information is not relevant to the decision on whether or not to process the products further (1 pt)? 2) Prepare an incremental analysis of the three products (6 pts): Tables Benches Planters 2) Prepare an incremental analysis of the three products (6 pts): Tables Benches Planters Incremental Revenue Incremental Cost Change in Net Income 3) Which products should be processed further and which should be sold at the split- off point (2 pts)? 4) Would your decision in #3 be different if the company was using quantity of output to allocate joint costs? Explain (1 pt)

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