Answer Happy

Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Chocoheaven can sell the cocoa powder as is, or it can pros the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revenue (Click the icon to view the sales revenue amounts and additional information.) Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response KED Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of 50, make sure to enter "0" in the appropriate input box.) Revenue Less: Additional processing costs Net benefit Sell as Cocoa Powder 15,000 0 Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates

Bet benefit ping costs Data table Cocoa powder Chocolate syrup Boxed assorted chocolates The cost of transforming the cocoa powder into chocolate syrup would be $66.000. Likewise, the company would incur a cost of $179,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $10,000 eats up most of the cocoa powder profits. Print Done $ 15,000 100,000 208,000