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Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead, the cabinets
Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,000, and the finished cabinets could be sold for $80,000. (a) Prepare a sell as is or process further analysis of Income effects. (b) Should the cabinets be sold as is or processed further and then sold? Answer is complete but not entirely correct. (a) Sell or Process Analysis Revenue Costs Income Sell As Is Process Further 60,000 S 80.000 02000x 12.000 10.000 s 18.000 Incremental income (loss) to process further 8,000 (b) The company should Process further C
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