Question

Stahl Inc. produces three separate products from a common process costing $100,700. 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			$59,100				$100,200				$189,900
Product 12			16,000				30,500				35,000
Product 14			54,000				149,800				215,300

Determine total net income if all products are sold at the split-off point.

Net income

$Type your answer here

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Determine total net income if all products are sold after further processing.

Net income

$Type your answer here

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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		$		Should be sold at the split-off pointShould be processed further
Product 12		$		Should be sold at the split-off pointShould be processed further
Product 14		$		Should be sold at the split-off pointShould be processed further

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Determine total net income using the results from previous part.

Net income

$

Is the net income different from that determined in part (b)?

YesNo, net income is                                                                       lowerhigher by $

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Answer 1