Exercise 23-3 Sell or process further LO P2 Cobe Company has already manufactured 20,000 units of Product A at a cost of $20 per unit. The 20,000 units can be sold at this stage for $400,000. Alternatively, the units can be further processed at a $250,000 total additional cost and be converted into 5,300 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $101 and for Product C is $57. 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 $ 1,190,800 Sales $ 400,000 Relevant costs: Costs to process further Costs to process further Total relevant costs 250,000 250,000 500,000 690,800 Income (loss) $ 400,000 $ Incremental net income (or loss) if processed further $ 290,800 Incremental income 3 The company should process further *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted