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Cobe Com pany has already manufactured 11000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at
Cobe Com pany has already manufactured 11000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this stage for $490,000. Alternatively. the units can be further processed at a $290,000 total additional cost and be convened into 5200 units of Product E! and 11.900 units of Product C. Per unit selling price for Product B is $105 and for Product C is $55. 1. Prepare an analysis that shows whether the 1?,000 units of Product .. should be processed further or not? Relevant costs: Total relevant costs Income (loss) Incremental net income {or loss) if processed furlh er The company should Incremental income Incremental loss Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should process further sell as is
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