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it says my answer is not complete. what am I missing? Cobe Company has already manufactured 28,000 units of Product A at a cost of
it says my answer is not complete. what am I missing?
Cobe Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The 28.000 units can be sold at this stage for $700,000. Alternatively, the units can be further processed at a $420,000 total additional cost and be converted into 5,600 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $105 and for Product C is $70. 1. Prepare an analysis that shows whether the 28,000 units of Product A should be processed further or not? Sell as is Process Further Sales $ 700,000 $ 1,372,000 Relevant costs Costs to process further 420,000 Total relevant costs 420,000 Income (loss) $ 952,000 Incremental net income (or loss) if processed further $ 252,000 Incremental income The company should process furtherStep by Step Solution
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