Cobe Company has already manufactured 24,000 units of Product A at a cost of $30 per unit. The 24,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $260,000 total additional cost and be converted into 5,700 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $107 and for Product C is $58.

1.

Prepare an analysis that shows whether the 24,000 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