$Q$

$.$

$3$

$Marvel,$ Inc. produces three separate products from a common process costing

$

$1$

$0$

$0$

$,$

$0$

$0$

$0$

$.$

$Eachof$ 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.

$$

$Required$

$>$

Determine total net income $if$ all products are sold $at$ the split

$-$

off point.

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

Using incremental analysis, determine which products should $be$ sold $at$ the split

$-$

off

point and which should $be$ processed further.

Determine total net income using the results from

$3$

$and$ explain why the net income $is$

different from that determined $in$

$2$

$.$