Q3

Cocoalicious processes cocoa beans into cocoa powder at a processing cost of $9,900 per batch. Cocoalicious 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 (Click the icon to view the sales revenue amounts and additional information.) 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 Has the president made the right or wrong decision? Explain your answer. The president has made the decision. Based on the analysis above, the company would realize the highest profits by Cocoa Chocolate Syrup Assorted Chocolates Powder Revenue processing the cocoa powder into boxed chocolates. our answer. processing the cocoa powder into chocolate syrup. selling the cocoa powder as is. nalysis above, the company would realize the highest profits by Enter any number in the edit fields and then continue to the next question. Cocoa powder $ 16,000 Chocolate syrup 101,000 Boxed assorted chocolates 192,000 The cost of transforming the cocoa powder into chocolate syrup would be $70,000. 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 $9,900 eats up most of the cocoa powder profits