Return to 1 Cobe Company has already manufactured 19,000 units of Product A at a cost of $15 per unit. The 19,000 units

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Return To 1 Cobe Company Has Already Manufactured 19 000 Units Of Product A At A Cost Of 15 Per Unit The 19 000 Units 1 (62.89 KiB) Viewed 86 times

Return to 1 Cobe Company has already manufactured 19,000 units of Product A at a cost of $15 per unit. The 19,000 units can be sold at this stage for $440,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,600 units of Product B and 11.600 units of Product C. Per unit selling price for Product B is $105 and for Product C is $57. 2.08 points 1. Prepare an analysis that shows whether the 19,000 units of Product A should be processed further or not? Answer is complete but not entirely correct. Sell as is Process Further 1,249,200 440,000 $ X 285,000 X 285.000 Sales Relevant costs: Manufacturing costs incurred to date Costs to process further Total relevant costs Income (loss) 240,000 525,000 285,000 195,000 X $ 747,300 X Incremental net income (or loss) if processed further $ 552,300 Incremental loss The company should process further ✓