Question

Ivanhoe Inc. produces three separate products from a common process costing $100,900. 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 | $59,300 | $100,400 | $189,600 | | Product 12 | $15,900 | $29,100 | $34,800 | | Product 14 | $54,500 | $149,900 | $214,400 | 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).) | Product | Incremental profit (loss) | Decision | |------------|---------------------------|----------| | Product 10 | | | | Product 12 | | | | Product 14 | | |

          Ivanhoe Inc. produces three separate products from a common process costing $100,900. 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  | $59,300                        | $100,400                | $189,600                              |
| Product 12  | $15,900                        | $29,100                 | $34,800                               |
| Product 14  | $54,500                        | $149,900                | $214,400                              |

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).)

| Product    | Incremental profit (loss) | Decision |
|------------|---------------------------|----------|
| Product 10 |                           |          |
| Product 12 |                           |          |
| Product 14 |                           |          |

ivanhoe inc produces three separate products from a common process costing 100900 each of the products can be sold at the split off point or can be processed further and then sold for a high 92614

Added by Sheila H.

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