Kingbird, Inc. produces three separate products from a common process costing $100,900. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. The cost and selling price data for a recent period are as follows:

		Sales Value at Split-Off Point		Cost to Process Further		Sales Value after Further Processing
Product 12		$49,200			$100,900			$190,200
Product 14		10,600			29,800			35,600
Product 16		60,900			149,300			219,300

Determine the total net income if all products are sold at the split-off point.

Total net income

$enter the total net income in dollars

Question Part Score

--/2

Determine the total net income if all products are sold after further processing.

Total net income

$enter the total net income in dollars

Question Part Score

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Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further. (If an amount reduces the net income then enter with a negative sign preceding the number, e.g. -15,000 or parenthesis, e.g. (15,000).)

		Incremental Profit/(Loss)		Decision
Product 12		$enter a dollar amount		select an option Should be processed furtherShould be sold at the split-off point
Product 14		$enter a dollar amount		select an option Should be processed furtherShould be sold at the split-off point
Product 16		$enter a dollar amount		select an option Should be processed furtherShould be sold at the split-off point

Question Part Score

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Determine the total net income using the results from the previous part of the question.

Total net income

$enter the total net income in dollars