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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 $25 per unit.
Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 18,000 units of Product A at a cost of $25 per unit. The 18,000 units can be sold at this stage for $440,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,700 units of Product B and 11,000 units of Product C. Per unit selling price for Product B is $106 and for Product C is $60. 1. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not? Process Further Sell as is 440,000 $ Sales Relevant costs: Costs to process further 280,000 Total relevant costs 280,000 Income (loss) $ 440,000 Incremental net income (or loss) if processed further Incremental income The company should process further
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