seek an analysis that shows whether the 22,000 units of Product A should be processed...
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seek an analysis that shows whether the 22,000 units of Product A should be processed further or not?
Cobe Company has already manufactured 22,000 units of Product A at a cost of $25 per unit. The 22,000 units can be sold at this stage for $430,000. Alternatively, the units can be further processed at a $270,000 total additional cost and be converted into 5,400 units of Product B and 11,700 units of Product C. Per unit selling price for Product B is $103 and for Product C is $55. 1. Prepare an analysis that shows whether the 22,000 units of Product A should be processed further or not? Sales Relevant costs: Costs to process further Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company shouldSales Relevant costs: Costs to process further Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should process further sell as is
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