Chp23 4

Cobe Company has already manufactured 20.000 units of Product A at a cost of $15 per unit. The 20.000 units can be sold at this stage for $480,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5.800 units of Product B and 11.500 units of Product C. Per unit selling price for Product B is $105 and for Product C is $56. Prepare an analysis that shows whether the 20.000 units of Product A should be processed further or not