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 $240,000 total additional cost and be converted into 5,400 units of Product B and 11,800 units of Product C. Per unit selling price for Product B is $103 and for Product C is $57. 1. Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not.

Sell as is Process Further Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should