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Question 3 A company manufactures three products using the same production process. The costs incurred up to the split-off point are $190,000. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product Number of Units Produced 3,800 5,500 1,500 Selling Price at Split-Off $10.00 11.00 19.00 Selling Price Additional after Processing Processing Costs $14.50 $11,100 15.70 18,250 22.10 7,250 (51) Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product Product E Product F Incremental profit (loss) $ (62) Which product(s) should be processed further and which should be sold at the split-off point? Product D Product E Product F Click if you would like to Show Work for this question: Open Show Work

Answer 1

DETERMINATION OF INCREMENTAL PROFIT/LOSS AND THE DECISION IN REGARD TO PRODUCTS WHETHER FURTHUR PROCEESED OR NOT.

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