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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 $490,000. 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 11,900 units of Product C. Per unit selling price for Product B is $110 and for Product C is $53. 1. Prepare an analysis that shows whether the 17,000 units of Product A should be processed further or not. Process Further Sell as is $ 490,000 Sales Relevant costs: Costs to process further further Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should
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