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Chino Company manufactures fabric and clothing. Managers can either sell the unfinished fabric to other clothing manufacturers or incur additional conversion costs to create a

Chino Company manufactures fabric and clothing. Managers can either sell the unfinished fabric to other clothing manufacturers or incur additional conversion costs to create a finished garment. The costs incurred to produce the unfinished fabric are $400,000, which are allocated to the products based on the sales value of the unfinished fabric. Following is information concerning the clothing that can be produced from the fabric

Product Number of Units Selling price of unfinished fabric Selling price after processing further Additional processing cost
Pants 6000 20.00 30.00 28450
Shirts 12000 23.20 32.40 64400
Coats 4000 38.80 43.20 18300

Calculate the increase or decrease in profit if the products are processed further (Enter all values as positive values.)

Profit
Pants
Shirts
Coats

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