Question: Using the budgeted data for the next month, what is the change in net income if Product 3 is processed further? Product 2 Units produced
Using the budgeted data for the next month, what is the change in net income if Product 3 is processed further? Product 2 Units produced 2,000 4,000 3,500 Per unit sales value at split-off $15 $25 $15 Per unit cost at split off 12 10 12 Added processing costs per unit 18 12 Per unit sales value if processed further $35 $30 $20 ($3,500) ($49,000) $56,000 $38,500 $3,500
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