Q.3 Relevant costs for decision making Cipla Uganda pharmaceutical company, buys a chemical for $10,000, which it breaks

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Q.3
Relevant costs for decision making
Cipla Uganda pharmaceutical company, buys a chemical for
$10,000, which it breaks down into two components:
Component
Sales value ($)
Allocated costs ($)
A
8,000
7,000
B
4,000
5,000
Component A can be converted into Product A if $6,000 is spent
on further processing. Product A would sell for $12,000.
Component B can be converted into Product B if $10,000 is spent
on further processing. Product B would sell for $17,000.
Required;