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heavenly desserts processes Cocoa beans into cocoa powder and a processing cost of $9900 per batch. heavenly desserts can sell the cocoa powder as is,
heavenly desserts processes Cocoa beans into cocoa powder and a processing cost of $9900 per batch. heavenly desserts can sell the cocoa powder as is, or it can process cocoa powder further into either chocolate syrup or box assorted chocolates. once processed, each batch of cocoa beans will result in the following sales revenue:
Cocoa powder $ 17,000 Chocolate syrup 103,000 Boxed assorted chocolates 208,000 The cost of transforming the cocoa powder into chocolate syrup would be $66,000. Likewise, the company would incur a cost of $184,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $9,900 eats up most of the cocoa powder profits. Sell as Sell as Cocoa Chocolate Syrup Sell as Boxed Assorted Chocolates Powder Revenue Less: Additional processing costs Net benefit has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response. please Begin by completing the following incremental analysis to compare selling the Cocoa powder as is with processing it further.
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