A company has already incurred $8,200 of costs in producing 6,950 units of Produ
ID: 2470822 • Letter: A
Question
A company has already incurred $8,200 of costs in producing 6,950 units of Product XY. Product XY can be sold as is for $30 per unit. Instead, the company could incur further processing costs of $11 per unit and sell the resulting product for $34 per unit. Should the company sell Product XY as is or process it further?
A company has already incurred $8,200 of costs in producing 6,950 units of Product XY. Product XY can be sold as is for $30 per unit. Instead, the company could incur further processing costs of $11 per unit and sell the resulting product for $34 per unit. Should the company sell Product XY as is or process it further? Process Further Incremental Amount Sell as is Selling price per unit Additional processing costs per unit Total The company should:Explanation / Answer
Particulars
Sell as is
Process Further
Incremental Amount
Selling Price Per unit
30
34
4
Additional processing Cost per unit
11
11
Total
30
23
-7
The Company should:
Sell as is
As it there is loss further processing
Particulars
Sell as is
Process Further
Incremental Amount
Selling Price Per unit
30
34
4
Additional processing Cost per unit
11
11
Total
30
23
-7
The Company should:
Sell as is
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