Lily 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.

		Sales Value at Split-Off Point				Cost to Process Further				Sales Value after Further Processing
Product 10			$60,800				$100,900				$190,500
Product 12			15,200				30,400				35,600
Product 14			55,600				150,400				214,000

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

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

Net income

$Enter the net income in dollars

eTextbook and Media

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

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

Net income

$Enter the net income in dollars

eTextbook and Media

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Product		Incremental profit (loss)		Decision
Product 10		$Enter a dollar amount		Select a decision Should be processed furtherShould be sold at the split-off point
Product 12		$Enter a dollar amount		Select a decision Should be processed furtherShould be sold at the split-off point
Product 14		$Enter a dollar amount		Select a decision Should be processed furtherShould be sold at the split-off point

eTextbook and Media

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Determine total net income using the results from previous part.

Net income

$Enter the net income in dollars

Is the net income different from that determined in part (b)?

Select between Yes and No YesNo, net income is Select between higher and lower higherlower by $Enter a dollar amount