Question: Determine whether to sell or E7-10B Marvel, Inc. produces three separate products from a common process cost- process further; joint products. ing $100,000. Each of

Determine whether to sell or E7-10B Marvel, Inc. produces three separate products from a common process cost- process further; joint products. ing $100,000. Each of the products can be sold at the split-off point or can be processed (L0 5) further and then sold for a higher price. Shown below are cost and selling price data for s a recent period. Sales Value Cost to Sales Value at Split-off Process After Further Point Further Processing Product 10 $60,000 $95,000 $200,000 Product 15 5,000 40,000 50,000 Product 20 70,000 160,000 210,000 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 in- come is different from that determined in (b)
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