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Obecz Company produced 20,000 units of Product A at a cost of $20 per unit. The 20,000 units can be sold as is for
Obecz Company produced 20,000 units of Product A at a cost of $20 per unit. The 20,000 units can be sold as is for a total of $600,000. Alternatively, the units of Product A can be processed further into 5,000 units of Product X and 13,000 units of Product Y. (Product X and Product Y must be made together.) The cost of the additional processing totals $300,000, Units of Product X can be sold for $120 each and units of Product Y can be sold for $25 each. Obecz s engineers believe that a change to the manufacturing process could result in the transformation of 20,000 units of Product A into 6,000 units of Product X and 10,000 units of Product Y, at the current cost. What would be Obeczs total profit if the change is made and Product X and Product Y are manufactured?
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