Answer:
Increase in income= (68,000 - 16,000) - 50,000= 2,000
New income= 68,000 - 16,000= 52,000
Explanation:
Giving the following information:
Product Y can be sold at the split-off point for total annual revenues of $50,000, or it can be processed further at a total annual cost of $16,000 and then sold for $68,000.
Increase in income= (68,000 - 16,000) - 50,000= 2,000
New income= 68,000 - 16,000= 52,000
