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10:204-Managerial Accounting- Spring 2022 Homework: HW-Chapter 25 Question 8, 825-8 (similar to) Part 1 of 2 Syeda Rabab Fatima HW Score: 38.9%, 4.67 of
10:204-Managerial Accounting- Spring 2022 Homework: HW-Chapter 25 Question 8, 825-8 (similar to) Part 1 of 2 Syeda Rabab Fatima HW Score: 38.9%, 4.67 of 12 points Points: 0 of 1 Heavenly Cocoa processes cocoa beans into cocoa powder at a processing cost of $10,100 per batch. Heavenly Cocoa can sell the cocoa powder as is, or it can process the cocoa powder further into either choco chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue: (Click the loon to view the sales revenue amounts and additional 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 complwing the following incremental analysis to comparo Data table Sell as Cocos Powder Sell at Chocol Syrup 16,500 Revenue Less: Additional processing costs Net benefi Cocoa powder Chocolate syrup Boxed assorted chocolates $ 16,500 96.000 190,000 The cost of transforming the cocoa powder into chocolate syrup would be $66,000. Likewise, the company would incur a cost of $180,000 to transform the cocoa powder into boxed 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 $10,100 eats up most of the cocoa powder profi in the appropriate input box.)
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