points
Stahl Inc. produces three separate products from a common processing with a joint cost is $ Each of the products can be sold at the splitoff 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.
tableSales Value at Split Off Point,Cost to process Further,Sales Value after Further ProcessingProduct AProduct BProduct C
Required:
A Using incremental analysis, determine which products should be sold at the splitoff point and which should be processed further? Why? Points
B Determine total net income if all products are sold at the splitoff point. Points
C In the sell at split off or further processing decision, is the joint processing cost relevant? Why? Points
