Cobe Company has already manufactured 20,000 units of Product A at a cost of $25 per unit. The 20,000 units can be sold at this stage for $420,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,800 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $109 and for Product C is $52. 1. Prepare an analysis that shows whether the 20,000 units of Product A should be processed further or not.

ell as is Process Further $420,000 Sales Relevant costs: Costs to process further Total relevant costs Income (loss) $(420,000) Incremental net income (or loss) if processed further The company should