.23 Homework ?.gqS 25-12 Decision To Acx\') 11 ? | ezto.mheducation.com/hm.tpx E

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.23 Homework ?.gqS 25-12 Decision To Acx') 11 ? | ezto.mheducation.com/hm.tpx Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 18 000 units of Product A at a cost of $15 per unit. The 18,000 units can be sold at this stage for $430,000. Alternatively the units can be further processed at a $260,000 total additional cost and be converted into 5,500 units of Product B and 11,700 units of Product C Per unit selling price for Product B is $105 and for Product C is $53 1. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not Sell as is Process Further Sales Relevant costs Total relevant costs Income (loss) Incremental net income for loss if pracessed further e company should Hints Reterences eBook & Resources lype here to search

Explanation / Answer

process Sell as is further Sales (5500*105+11700*53) 430,000 1197600 Relevant costs costs to process further 260,000 total relevant costs 260,000 income(loss) 430,000 937,600 incremetal net income (loss) if processed further 507,600 incremental income the company should process further

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