Sunland 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. Product 10 Product 12 Product 14 (c) Your answer is partially correct. Product Product 10 Product 12 $ Sales Value at Split-Off Point $59,700 15,800 $ 55,400 Product 14 $ Cost to Process Further 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).) Incremental profit (loss) $100,100 30,800 149,700 Sales Value after Further Processing $191,000 34,700 Decision 214,000 Should be processed further Should be sold at the split-off point Should be processed further

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
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Sunland 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.
Product 10
Product 12
Product 14
(c)
Product
Your answer is partially correct.
Product 10
Product 12
Product 14
$
Sales Value
at Split-Off
Point
$59,700
$
15,800
$
55,400
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).)
Incremental profit (loss)
Cost to
Process
Further
eTextbook and Media
$100,100
30,800
149,700
Sales Value
after Further
Processing
$191,000
34,700
Decision
214,000
Should be processed further
Should be sold at the split-off point
Should be processed further
Assistance Used
Transcribed Image Text:Sunland 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. Product 10 Product 12 Product 14 (c) Product Your answer is partially correct. Product 10 Product 12 Product 14 $ Sales Value at Split-Off Point $59,700 $ 15,800 $ 55,400 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).) Incremental profit (loss) Cost to Process Further eTextbook and Media $100,100 30,800 149,700 Sales Value after Further Processing $191,000 34,700 Decision 214,000 Should be processed further Should be sold at the split-off point Should be processed further Assistance Used
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