Cobe Company has already manufactured 16,000 units of Product A at a cost of $25 per unit. The 16,000 units can be sold at this stage for $430,000. Alternatively, the units can be further processed at a $230,000 total additional cost and be converted into 5,400 units of Product B and 11,100 units of Product C. Per unit selling price for Product B is $101 and for Product C is $51. 1. Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not?

Process Further Sell as is $ 430,000 Sales Relevant costs: Costs to process further 545,400 Total relevant costs Income (loss) 545,400 566,100 Incremental net income (or loss) if processed further Incremental income The company should process further