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Cobe Company has already manufactured 21000 units of Product A at a cost of $25 per unit. The 21,000 units can be sold at this
Cobe Company has already manufactured 21000 units of Product A at a cost of $25 per unit. The 21,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,000 units of Product B and 11,700 units of Product C. Per unit selling price for Product B is $104 and for Product C is $60. 1. Prepare an analysis that shows whether the 21,000 units of Product A should be processed further or not? Answer is not complete. Process Sell as is Further 450,000 IS Sales Relevant costs: Costs to process further 0 290,000 0 290,000 Total relevant costs Income (loss) $ 450,000 Incremental net income (or loss) if processed further The company should process further
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