Question #$5$

Incremental Analysis

$10$ marks $25$ minutes

Bahrat, 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. The cost and selling price data for a recent period are as follows:

$\backslash$table$[[,\backslash$table$[[$Sales Value at$],[$Split$-$Off Point$]],\backslash$table$[[$Cost to$],[$Process Further$]],\backslash$table$[[$Sales Value after$],[$Further Processing$]]],[$Product $12,$$$50,000,$$$100,000,$$$190,000$