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Oriole, Inc. produces three separate products from a common process costing $100,400. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. The cost and selling price data for a recent period are as follows:

		Sales Value at Split-Off Point			Cost to Process Further			Sales Value after Further Processing
Product 12		$50,400			$100,400			$189,200
Product 14		10,400			30,400			35,900
Product 16		59,000			149,500			219,700

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

Total net income

$enter the total net income in dollars

Question Part Score

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

Total net income

$enter the total net income in dollars

Question Part Score

--/3

Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

		Incremental Profit/(Loss)		Decision
Product 12		$enter a dollar amount		select an option Should be processed furtherShould be sold at the split-off point
Product 14		$enter a dollar amount		select an option Should be sold at the split-off pointShould be processed further
Product 16		$enter a dollar amount		select an option Should be processed furtherShould be sold at the split-off point

Question Part Score

--/6

Determine the total net income using the results from the previous part of the question.

Total net income

$enter the total net income in dollars

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