| Product | Number of Units Produced | Selling Price at Split-Off | Selling Price After Processing | Additional Processing Costs |
| tables | 4500 | $11.00 | $15.50 | $11,000 |
| benches | 6000 | $14.00 | $16.20 | $16,500 |
| planters | 1500 | $18.50 | $26.00 | $8,000 |
Superior Company manufactures three products using the sameproduction process: tables, benches, and planters. The costsincurred up to the split-off point are $250,000. These costs areallocated to the products on the basis of their sales value at thesplit-off point. The number of units produced, the selling pricesper units at each point in production, and the additionalprocessing costs are as follows:
1) Which information is not relevant to the decision on whetheror not to process the products further (1 pt)?
2) Prepare an incremental analysis (with labels!) of the threeproducts (6 pts).
3) Which products should be processed further and which shouldbe sold at the split-off point (2 pts)?
4) Would your decision in #3 be different if the company wasusing quantity of output to allocate joint costs? Explain (1pt).
