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Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $41 per unit. Normally, 41.000 units are sold

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Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that it sells for $41 per unit. Normally, 41.000 units are sold each year. Variable unit cost data on the assembly are as follows: $10 Direct material Direct labor 8 Variable manufacturing averhead 4 The company is now using only 70% of its normal capacity: it could fully use its normal capacity by processing the assembly further and selling it for $48 per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $215,000. Prepare an analysis showing whether Jernsen should process the assemblies further Use a negative sign with answer to only indicate an income loss from processing assemblies further: otherwise do not use negative signs with your answers Sell of Procuss Further Differentinl Analysin Differential revenue 0x Differential costs Direct material Direct labor Variable overhead 0x Fixed costs Additional income (oss) from processing further Checl You have correctly selected 0. Incorrect Marks for this submission 0.00/2.00

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