Heavenly Desserts processes cocoa beans into cocoa powder at a processing cost of $9,700 per batch. Heavenly Dessert can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue:

Cocoa powder	$14,500
Chocolate syrup	103,000
Boxed assorted chocolates	204,000

The cost of transforming the cocoa powder into chocolate syrup would be $72,000. Likewise, the company would incur a cost of $183,000 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 $9,700eats up most of the cocoa powder profits.

Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.

Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "0" in the appropriate input box.)

	Sell as Cocoa Powder	Sell as Chocolate Syrup	Sell as Boxed Assorted Chocolates
Revenue
Less: Additional processing costs
Net benefit