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Cobe Company has already manufactured 17.000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this
Cobe Company has already manufactured 17.000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this stage for $500,000 Alternatively, the units can be further processed at a $260,000 total additional cost and be converted into 5,600 units of Product 8 and 11.300 units of Product C. Per unit selling price for Product B is $107 and for Product C is $51. 1. Prepare an analysis that shows whether the 17,000 units of Product A should be processed further or not? Sell as is Process Further $ 500.000 Sales Relevant costs Manufacturing costs incurred to date Costs to process further Total relevant costs Income (loss) Incremental net income or loss) if processed further The company should
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