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v Schrute Company has 10,600 units of its sole product in inventory that it produced last year at a cost of $29 each. This year's
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Schrute Company has 10,600 units of its sole product in inventory that it produced last year at a cost of $29 each. This year's modelis superior to last year's, and the 10,600 units cannot be sold at last year's regular selling price of $36 each. Schrute has two alternatives for these items: (1) they can be sold to a wholesaler for $10 each or (2) they can be processed further at a cost of $240,900 and then sold for $32 each Should Schrute sell the products as Is or process further and then sell them? INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue Isold as is Incremental revenue 0 0 Incremental net income (Loss) $ The company should Step by Step Solution
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