Cocoaheaven processes cocoa beans into cocoa powder at a processing cost of $ 9,800 per batch. Cocoaheaven can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue:

The cost of transforming the cocoa powder into chocolate syrup would be $ 66,000. Likewise, the company would incur $ 182,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates owing to its high sales value and to the fact that the $ 9,800 cost of processing cocoa beans "eats up" most of the cocoa powder profits. Has the president made the right or wrong decision? Explain your answer.

Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "0" for any zero amounts.)

Cocoa. powder. . . $ 16,000 Chacolate.sy.rup. . $ 101,000 Boxed assarted chocolates.. $ 200,000 Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "O" for any zero amounts.) Sell as Sell as Sell as Boxed Chocolate Assorted Powder Syrup Chocolates Less: Net benefit The president has made the decision for the following reasons: (If a box is not used in the table leave the box empty; do not select a label.) Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "O" for any zero amounts.) Sell as Sell as Sell as Boxed Chocolate Assorted Syrup Powder Chocolates Additional processing costs Contribution margin Fixed expenses n for the following reasons: (If a box is not used in the table leave the box empty; do not select a label.) Revenue Variable expenses Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "O" for any zero amounts.) Sell as Sell as Sell as Boxed Assorted Chocolate Powder Syrup Chocolates Less: Net benefit The president has made the decision for the following reasons: (If a box is not used in the table leave the box empty; do not select a label.) In addition to the revenues, the additional costs of transforming the cocoa powder into other products needs to be considered. Revenues are the most important factor when considering a product's profitability. The cost of processing the cocoa beans is relevant since it will be incurred no matter which of the three products is sold. The cost of processing the cocoa beans is irrelevant since it will be incurred no matter which of the three products is sold