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Cocoale processes cocoa beara into cocoa powder at a processing cost of $10,300 per batch. Cacoale can set the cocoa powder as is, or
Cocoale processes cocoa beara into cocoa powder at a processing cost of $10,300 per batch. Cacoale can set the cocoa powder as is, or it can process the cocoa powder further into other chocolate syrup or boxed anoted thecala One p (Cck the ion to view the sales revenue amounts and additional information) Has the president made the right or wrong decision? Explain your answer Be sure to include the conect Snancial analysis in your response Begin by completing the folowing incremental analysis to compare safing the cocoa powder as is with processing it further (For amounts with a value of 10, make sure to enter the appropriate input box) Sellas Sell as Cocoa Chocolate Powder Syrup Sell a Boxed Assorted Chocolates Data table X Revenue Less: Additional processing costs Net benefit Cocoa powder Chocolate syrup 14.000 100.000 206,000 Boxed assorted chocolates The cost of wansforming the cocoa powder into chocolate syrup would $72,000 Likewise, the company would incur a cost of $184,000 to translarm the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $10,300 eats up most of the cocoa powder profits Print Done
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