Question

Exercise 7-10 (Video) Stahl Inc. produces three separate products from a common process costing $100,900. 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 $59,300 $100,400 $189,600 Product 12 15,900 29,100 34,800 Product 14 54,500 149,900 214,400

Determine total net income if all products are sold at the split-off point. Net income $ LINK TO TEXT

Determine total net income if all products are sold after further processing. Net income $ LINK TO TEXT

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 LINK TO TEXT

Determine total net income using the results from previous part. Net income $ Is the net income different from that determined in part (b)? NoYes , net income is higherlower by $

Answer 1