value 333 points Cobe Company has already manufactured 16,000 units of Product A

Question

value 333 points Cobe Company has already manufactured 16,000 units of Product A at a cost of $20 per unit. The 16,000 units can be sold at this stage for $480,000. Alternatively, the units can be further processed at a $210,000 total additional cost and be converted into 5,900 units of Product B and 11,300 units of Product C. Per unit selling price for Product B is $107 and for Product C is $59 Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not Sell as is Process further Sales S 480,000 Relevant costs Costs to process further Total relevant costs 210,000 Income (loss) $ 818,000 Incremental net income (or loss) if processed further The company should Hints References eBook & Resources Hint.1

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Sell As is Process Further Incremental Sales            480,000.00           1,298,000.00              818,000.00 Relevant Costs Initial cost            320,000.00               320,000.00                                -   Costs to process further               210,000.00              210,000.00 Total relevant costs            320,000.00               530,000.00              210,000.00 Income (Loss)            160,000.00               768,000.00              608,000.00 Incremental net income(or loss) if processed further            608,000.00 The company should process further

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