Stahl Inc. produces three separate products from a common process costing $100,000. 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.

Instructions
(a) Determine total net income if all products are sold at the split-off point.
(b) Determine total net income if all products are sold after further processing.
(c) Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further.
(d) Determine total net income using the results from (c) and explain why the net income is different from that determined in(b).

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Sales Value at Split-Off Point $60,000 15,000 55,000 Cost to Process Further $100,000 30,000 150,000 Sales Value after Further Processing $190,000 Product 10 Product 12 Product 14 35,000 215,000