Reference no: EM133093267

Question - Shamrock, 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. The cost and selling price data for a recent period are as follows:

	Sales Value at Split-Off Point	Cost to Process Further	Sales Value after Further Processing
Product 12	$50,900	$100,100	$189,800
Product 14	10,400	30,800	34,600
Product 16	59,100	149,100	219,000

Required -

1. Determine the total net income if all products are sold at the split-off point.

2. Determine the total net income if all products are sold after further processing.

3. Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further.

4. Determine the total net income using the results from the previous part of the question.