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Cobe Company has already manufactured 18,000 units of Product A at a cost of $30 per unit. The 18,000 units can be sold at this

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Cobe Company has already manufactured 18,000 units of Product A at a cost of $30 per unit. The 18,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,600 units of Product B and 11,800 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 18,000 units of Product A should be processed further or not. Sell as is Process Further 490,0001,167,400 Sales Relevant costs: Costs to process further Total relevant costs Income (loss) Incremental net income (or loss) if processed further Incremental income The company should process further

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