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Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 18,000 units of Product A at a cost of $30 per unit.

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Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 18,000 units of Product A at a cost of $30 per unit. The 18,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $220,000 total additional cost and be converted into 5,500 units of Product B and 11.400 units of Product C. Per unit selling price for Product B is $104 and for Product is $59. 1. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not? Sales Sell as is Process Further $ 410,000 $ 1,244,600 Relevant costs Manufacturing costs incurred to date Total relevant costs Income (loss) $ 484,600 $ Incremental not income (or loss) if processed further 614,600 Incremental income The company should process further Prev 6 of 7 Next > o search o

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