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 $240,000 total additional cost and be converted into 5,500 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $106 and for Product C is $50. 1. Prepare an analysis that shows whether the 20,000 units of Product A should be processed further or not? Answer is not complete. Sell as is Process Further Sales Relevant costs: Costs to process further Costs to process further Total relevant costs Income (loss) x Incremental net income (or loss) if processed further The company should 3 A company with excess capacity must decide between scrapping or reworking units that do not pass inspection. The company has 19,000 defective units that cost $5.30 per unit to manufacture. The units can be a) sold as is for $3.20 each, or b) reworked for $4.60 each and then sold for the full price of $8.50 each. What is the incremental income from selling the units as scrap and reworking and selling the units? Should the company sell the units as scrap or rework them? (Enter costs and losses as negative values.) Sale as Scrap Rework Next Incremental income (loss) $ 0 $ 0 The company should