Brickhouse is expected to pay a dividend of $2.90 and $2.36 over the next two years, respectively. After that, the company is ex
1 answer:
You might be interested in
Answer:
The incremental profit (loss) for each product is:
A = $-12,000
B = $49,000
C = $41,000
Explanation:
Split off Point: The split off point is that point in which joint products treated separately and sell them as a unique product.
Incremental Cash flow: The incremental cash flow is that cash flow which show the difference between the split off sales and normal sales.
Here, incremental means that if split off sales is greater than normal sales than firm is earning profit else the firm will suffer loss.
Steps to compute the incremental cash flows for each products:
Step 1: First write Additional selling price of all three products
Step 2: Than write the Split off selling price of all three products
Step 3: Now take the difference of selling price
Step 4: After that, multiply step 3 with split off sales
Step 5: Than write the additional sales
Step 6: Compare the two sales and analyse whether firm earns profits or suffer a loss, and finally the increment cash flows come.
The calculation is done in attachment sheet.
Thus, the incremental profit (loss) for each product is:
A = $-12,000
B = $49,000
C = $41,000
Answer:
See explanation Section
Explanation:
See the following images to get the proper explanations and step-by-step answer.
