1. Prepare an incremental analysis for the decision whether to sell or process materials further.
4P7.41A ( LO4 ) A company manufactures three products using the same production process.
The costs incurred up to the split-off point are $200,000. These costs are allocated to the
products on the basis of their sales value at the split-off point. The number of units produced, the
selling prices per unit of the three products at the split-off point and after further processing, and
the additional processing costs are as follows: Instructions a. Determine which information is
relevant to the decision on whether to process the products further. Explain why this information
is relevant. b. Which product(s) should the company process further and which should it sell at
the split-off point? b. Product C: $(4,600) c. Would your decision be different if the company
was using the quantity of output to allocate joint costs? Explain.