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Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 25,000 units of Product A at a cost of $20 per unit.
Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 25,000 units of Product A at a cost of $20 per unit. The 25,000 units can be sold at this stage for $420,000. Alternatively, the units can be further processed at a $230,000 total additional cost and be converted into 5100 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $103 and for Product C is $59. 1. Prepare an analysis that shows whether the 25,000 units of Product A should be processed further or not? Sell as is Process Further Relevant costs Costs to process furthe 1000 Total relevant costs 230.000 Income (los) remental net income (or loss) it processed further 376,300 incremental income The company should process further
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