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Cobe Company has already manufactured 16,000 units of Product A at a cost of $15 per unit. The 16,000 units can be sold at this

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Cobe Company has already manufactured 16,000 units of Product A at a cost of $15 per unit. The 16,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $300,000 total additional cost and be converted into 5,800 units of Product B and 11,600 units of Product C. Per unit selling price for Product B is $107 and for Product C is $52. 1. Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not. Sell as is S 490,000 Process Further $ 1,223,800 Sales Relevant costs: Costs to process further 300,000 1 Total relevant costs Income (loss) 300,000 923,800 $ 490,000 $ Incremental net income (or loss) if processed Aurther is 5.1 1 3D The company should process further 11

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