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2 Cobe Company has already manufactured 20,000 units of Product A at a cost of $25 per unit. The 20,000 units can be sold at

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2 Cobe Company has already manufactured 20,000 units of Product A at a cost of $25 per unit. The 20,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $230,000 total additional cost and be converted into 5,700 units of Product B and 11,000 units of Product C. Per unit selling price for Product B is $108 and for Product C is $52. 1. Prepare an analysis that shows whether the 20,000 units of Product A should be processed further or not? 1.66 points Sell as is Process Further eBook Sales Relevant costs: Total relevant costs Income (loss) Print Incremental net income (or loss) if processed further DO References The company should 5 1.66 points Colt Company owns a machine that can produce two specialized products. Production time for Product TLX is two units per hour and for Product MTV is four units per hour. The machine's capacity is 2,500 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 4.250 units of Product TLX and 1,970 units of Product MTV. Selling prices and variable costs per unit to produce the products follow. $ per unit Product TLX Product MTV Selling price per unit $12.00 $7.20 Variable costs per unit 3.60 4.32 eBook Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.) Hint Print Product TLX Product MTV Contribution margin per unit References Contribution margin per production hour Total Product TLX 4,250 Product MTV 1,970 Maximum number of units to be sold Hours required to produce maximum units Product TLX Product MTV Total For Most Profitable Sales Mix Hours dedicated to the production of each product Units produced for most profitable sales mix Contribution margin per unit Total contribution margin

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