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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
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 $450,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,700 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $107 and for Product C is $53. 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 450,000 1,203,500 Sales Relevant costs: Costs to process further Total relevant costs Income (loss) Incremental net income (or loss) if processerd further The company should
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