Exercise 10-8 Sell or process further LO A

Exercise 10-8 Sell or process further LO A1 Cobe Company has already manufactured 20,000 units of Product A at a cost of $10 per unit. The 20,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,400 units of Product B and 12,000 units of Product C. Per unit selling price for Product B is $103 and for Product C is $53. 1. Prepare an analysis that shows whether the 20,000 units of Product A should be processed further or not. Sell as is Process Further Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should