Stahl 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	Cost to	Sales Value
		at Split-off	Process	after Further
		Point	Further	Processing
	Product 10	$60,000	$100,000	$190,000
	Product 12	15,000	30,000	35,000
	Product 14	55,000	150,000	215,000
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 income
	is different from that determined in (b).
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)	Determine total net income if all products are sold at the split-off point.
	Sales	Value
	Joint costs	Value
	Net income	?
(b)	Determine total net income if all products are sold after further processing.
	Sales	Value
	Joint costs	Value
	Additional costs	Value
	Net income	?
(c)	Using incremental analysis, determine which products should be sold at the split-off
	point and which should be processed further.
		Product 10	Product 12	Product 14
	Incremental revenue	Value	Value	Value
	Incremental costs	Value	Value	Value
	Incremental profit (loss)	?	?	?
(d)	Determine total net income using the results from (c ) and explain why the net income
	is different from that determined in (b).
	Sales	Value
	Joint costs	Value
	Additional costs	Value
	Net income	?
After you have completed E14-10, consider the additional question.
	Assume that sales value at split-off point for Product 10 changed to $75,000 and
	the cost to process Product 14 further changed to $162,000. What impact do these
	changes have on total net income at split-off point and after further processing?