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Exercise 9.4.Sell now or Process Further You have been provided the following information concerning the sell now or process further decisions. Current production method cost

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Exercise 9.4.Sell now or Process Further You have been provided the following information concerning the sell now or process further decisions. Current production method cost data: Selling price $ 20 Units manufactured 100 Production capacity (units) 150 Labor hours required (per unit) 2 Manufacturing costs: Material (per unit) $ 1.00 Factory labor (per unit) $15.00 Fixed manufacturing overhead $ 5.00 Variable manufacturing cost (per hour) $ 50 Costs of Additional Processing: Labor hours (per unit) 1.0 Labor rate (per hour) $ 7.50 New selling price $ 30.00 *If the additional processing is undertaken the variable manufacturing cost rate will remain the same. Required: Use incremental analysis to determine whether processing further should be undertaken

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