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Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 20,000 units of Product A at a cost of $30 per unit.
Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 20,000 units of Product A at a cost of $30 per unit. The 20,000 units can be sold at this stage for $500,000. Alternatively, the units can be further processed at a $270,000 total additional cost and be converted into 5,100 units of Product B and 11,200 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 $ 500,000 Sales Relevant costs Manufacturing costs incurred to date Costs to process further Total relevant costs 1,118,900 (270,000) 848,900 848,900 Income (loss) 600,000s Incremental net income (or loss) if processed 248.90 Incremental income further The company should process further
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