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Cocoalicious processes cocoa beans into cocoa powder at a processing cost of $9,600 per batch. Cocoalicious can sell the cocoa powder as is, or it
Cocoalicious processes cocoa beans into cocoa powder at a processing cost of $9,600 per batch. Cocoalicious can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue: (Click the icon 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 correct financial analysis in your response. Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "0" in the appropriate input box.) Sell as Sell as Boxed Sell as Cocoa Chocolate Assorted Powder Syrup Chocolates Data table Revenue Less: Additional processing costs Cocoa powder $ 13,000 Net benefit Chocolate syrup 98,000 Boxed assorted chocolates 194,000 The cost of transforming the cocoa powder into chocolate syrup would be $69,000. Likewise, the company would incur a cost of $178,000 to transform 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 $9,600 eats up most of the cocoa powder profits. Help me solve this Demodocs example Get more help
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