Score: 0 of 1 pt 40f 10 (2 complete ) Hw Score: 20%, 2 of 10pt Question Help S25

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Score: 0 of 1 pt 40f 10 (2 complete ) Hw Score: 20%, 2 of 10pt Question Help S25-8 (similar to) Hoavenly Chocolate processes cocoa beans into cocca powder at a processing cost of $9,600 per batch. Heavenly Chocolate can sell the cocoa powder as is, or it can process the cocoa powder further into ether chocolate syrup or boxed assorted chocolates. Once processed, each batch of coooa beans would resut in the following sales revenue: (Click the icon to view the sales revenue anunts and adeional information. ) Has the president made the right or wrong decision? Explain your answer.Be sure to include the correct financial analysis in your response Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "0" in the appropriate nput box.) Sell as Selas Sell as Boxed Cocoa Chocolate Assorted Powder Data Table Syrup Chocolates Revenue Less: Additional prooessing costs Net benett Cocoa powder Chocolate syrup Boxed assorted chocolates $ 12,000 104,000 194,000 The cost of transforming the cocoa powder into chocolate syrup would be $72,000. Likewise, the company would incur a cost of $184,000 to transform the cocoa powder into assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $9,600 eats up most of the cocoa powder profits Enter any number in the edit fields and then click Check Answer Print Done

Explanation / Answer

Sales as Sales as Sales as Cocoa powder Chocolate syrup Boxed chocolate Revenue 12000 104000 194000 Less Additional processing cost 9600 81600 193600 net benefits 2400 22400 400

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