Question - Stahl 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 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 1 $60,000 $100,000 $190,000
Product 2 15,000 30,000 35,000
Product 3 55,000 150,000 215,000
Using incremental analysis, determine which products should be sold at the split off point and which should be processed further.