Answer Happy

Cobe Company has already manufactured 17,000 units of Product A at a cost of $25 per unit. The 17,000 units can be sold at this stage for $490.000. Alternatively, the units can be further processed at a $280.000 total additional cost and be converted into 5,800 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 $52. 1. Prepare an analysis that shows whether the 17,000 units of Product A should be processed further or not? Sales Relevant costs Costs to process further Total relevant costs Income (loss) Answer is complete but not entirely correct. Process Further $1,185,100 The company should O S Sell as is 490,000 $ 460,000 $ Incremental net income (or loss) if processed further process further $ 220,000 220,000 965,100 505,100 Incremental income