Question: Using the budgeted data for the next month, what is the change in net income if Product 1 is processed further? Product 1 2 3

Using the budgeted data for the next month, what is the change in net income if Product 1 is processed further?

Product

1

2

3

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

4

Per unit sales value if processed further

$35

$30

$20

Group of answer choices

($20,000)

($4,000)

($6,000)

$4,000

$34,000

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