Question: A company manufactures three products using the same production process. The costs incurred up to the split-off point are $193,600. These costs are allocated to

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $193,600. 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		Selling Price at Split-Off		Selling Price after Processing		Additional Processing Costs
D		4,090		$10.40		$14.60		$11,178
E		6,170		11.80		15.90		17,327
F		1,680		19.80		22.60		7,424

(b1) Determine the incremental profit (loss) of each product(s).

(b2) Which product(s) should be processed further and which should be sold at the split-off point?

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