Chocolicious processes cocoa beans into cocoa powder at a processing cost of $9,900 per batch. Chocolicious...
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Chocolicious processes cocoa beans into cocoa powder at a processing cost of $9,900 per batch. Chocolicious can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue (Click the icon to view the sales revenue.) The cost of transforming the cocoa powder into chocolate syrup would be $69,000. Likewise, the company would incur $178,000 to transform the cocoa powder into boxed asserted chocolates. The company president has decided to make boxed assorted chocolates owing to its high sales value and to the fact that the $9,900 cost of processing cocoa beans "eats up" most of the cocoa powder profits. Has the president made the right or wrong decision? Explain your answer. Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "0" for any zero amounts.) Less Net benefit Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Assorted : Chocolates Data table X 14,500 O" for a Cocoa powder.. Chocolate syrup.. Boxed assorted chocolates.. EA $ 69 $ 99,000 $ 202,000 Print Done Chocolicious processes cocoa beans into cocoa powder at a processing cost of $9,900 per batch. Chocolicious can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue (Click the icon to view the sales revenue.) The cost of transforming the cocoa powder into chocolate syrup would be $69,000. Likewise, the company would incur $178,000 to transform the cocoa powder into boxed asserted chocolates. The company president has decided to make boxed assorted chocolates owing to its high sales value and to the fact that the $9,900 cost of processing cocoa beans "eats up" most of the cocoa powder profits. Has the president made the right or wrong decision? Explain your answer. Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "0" for any zero amounts.) Less Net benefit Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Assorted : Chocolates Data table X 14,500 O" for a Cocoa powder.. Chocolate syrup.. Boxed assorted chocolates.. EA $ 69 $ 99,000 $ 202,000 Print Done
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