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Cobe Company has already manufactured 23,000 units of Product A at a cost of $30 per unit. The 23,000 units can be sold at this
Cobe Company has already manufactured 23,000 units of Product A at a cost of $30 per unit. The 23,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $210,000 total additional cost and be converted into 5,900 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $102 and for Product C is $58. 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 anufacturing costs incurred to date Costs to process further Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should process further
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