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Using the budgeted data for the next month, what is the change in net income if Product 1 is processed further? Product 1 2 3
Using the budgeted data for the next month, what is the change in net income if Product 1 is processed further?
Product | 1 | 2 | 3 |
Units produced | 2,000 | 4,000 | 3,500 |
Per unit sales value at split-off | $15 | $25 | $15 |
Per unit cost at split off | 12 | 10 | 12 |
Added processing costs per unit | 18 | 12 | 4 |
Per unit sales value if processed further | $35 | $30 | $20 |
Group of answer choices
($20,000)
($4,000)
($6,000)
$4,000
$34,000
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