E7 10 Schultz Inc Produces Three Separate Products From A Common Process Costing 100 3307481

E7-10 Schultz, 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 furtherand then sold for a higher price. Shown below are cost and selling price data for a recentperiod.Sales Value Cost to Sales Valueat Split-off Process after FurtherPoint Further ProcessingProduct 12 $50,000 $100,000 $190,000Product 14 10,000 30,000 35,000Product 16 60,000 150,000 220,000Instructions(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-offpoint and which should be processed further.(d) Determine total net income using the results from (c) and explain why the net in?come is different from that determined in (b).

Prof. Angela


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