Need answered as soon as possible please! Cobe Company has already manufactured

Question

Need answered as soon as possible please!

Cobe Company has already manufactured 15,000 units of Product A at a cost of $30 per unit. The 15,000 units can be sold at this stage for $440,000. Alternatively, the units can be further processed at a $220,000 total additional cost and be converted into 5,900 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $101 and for Product C is $54. 1. Prepare an analysis that shows whether the 15,000 units of Product A should be processed further or not. Sell as is Process Further 440,000 Sales Relevant costs: Costs to process further 220,000 Total relevant costs 220,000 Income (loss) Incremental net income (or loss) if processed further The company should

Explanation / Answer

Prepare Analysis:

Sell as is Process further Sales 440000 1200700 Relevant cost Process further (220000) Total relevant cost (220000) Income (loss) 440000 980700 Incremental net income (or loss) if processed further 540700 The company should Sale after process further

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