Stahl Inc. produces three separate products from a common process costing $100,300. 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 Valueat Split-OffPoint Cost toProcessFurther Sales Valueafter FurtherProcessing Product 10 $59,400 $100,900 $190,100 Product 12 15,000 30,100 34,000 Product 14 55,600 149,400 215,900 Determine total net income if all products are sold at the split-off point.Net income$eTextbook and MediaDetermine total net income if all products are sold after further processing.Net income$eTextbook and MediaCalculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should beprocessed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)ProductIncremental profit (loss)DecisionProduct 10$Product 12$Product 14$eTextbook and MediaDetermine total net income using the results from previous part.Net income$Is the net income different from that determined in part (b)?,net income isby $eTextbook and Media

Particulars Product 10 Product 12 Product 14 Total Sales Value at split-off 59,400.00…

Answered: Stahl Inc. produces three separate…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

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Stahl Inc. produces three separate products from a common process costing $100,300. 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 at Split-Off Point		Cost to Process Further	Sales Value after Further Processing
Product 10		$59,400			$100,900	$190,100
Product 12		15,000			30,100	34,000
Product 14		55,600			149,400	215,900

Determine total net income if all products are sold at the split-off point.
Net income
$
eTextbook and Media
Determine total net income if all products are sold after further processing.
Net income
$
eTextbook and Media
Calculate incremental profit/(loss) and determine which products should be sold at the split-off point and which should be
processed further. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Product
Incremental profit (loss)
Decision
Product 10
$
Product 12
$
Product 14
$
eTextbook and Media
Determine total net income using the results from previous part.
Net income
$
Is the net income different from that determined in part (b)?
,net income is
by $
eTextbook and Media

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