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Exercise 10-8 Sell or process further LO A1 Cobe Company has already manufactured 22,000 units of Product A at a cost of $15 per unit.
Exercise 10-8 Sell or process further LO A1 Cobe Company has already manufactured 22,000 units of Product A at a cost of $15 per unit. The 22,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,000 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $110 and for Product C is $53. 1. Prepare an analysis that shows whether the 22,000 units of Product A should be processed further or not. Sell as is Process Further Sales Relevant costs: Costs to process further $ 490,000 Total relevant costs Income (loss) Incremental net income (or loss) if processed Incremental income further The company should process further
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