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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

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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 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 Pants Shirts Coats Number of Units 6,00 Selling Price of Unfinished Fabric 520.00 23.20 18. Selling Price after Processing further $10.00 Additional Processing cost $2,45 64, 18.00 41.20 Required: 2.a. 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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