Stahl Inc. produces three separate products from a common
process costing $100,100. 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 | $60,400 | $100,400 | $190,900 | ||||||||||
Product 12 | 15,000 | 29,500 | 35,000 | ||||||||||
Product 14 | 55,200 | 149,500 | 215,200 |
Determine total net income using the results from previous
part.
Net income | $ |
Is the net income different from that determined in part
(b)?
NoYes, net income is higherlower by $ |
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