Cobe Company has already manufactured 23,000 units of Product A at a cost of $10 per unit. The 23,000 units can be sold at this stage for $400,000. Alternatively, the units can be further processed at a $220,000 total additional cost and be converted into 5,500 units of Product B and 12,000 units of Product C. Per unit selling price for Product B is $108 and for Product C is $54. 1. Prepare an analysis that shows whether the 23,000 units of Product A should be processed further or not?

Sell as is Process Further Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should