c10-2.pdf - Score 6/6 Points 100 1 Award 6 out of 6.00 points Cobe Company has already manufactured 17,000 units of Product A at a cost of \$30 per unit

# c10-2.pdf - Score 6/6 Points 100 1 Award 6 out of 6.00...

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Score: 6/6 Points 100 %
1. Award: 6 out of 6.00 points Cobe Company has already manufactured 17,000 units of Product A at a cost of \$30 per unit. The 17,000 units can be sold at this stage for \$480,000. Alternatively, the units can be further processed at a \$210,000 total additional cost and be converted into 5,500 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is \$110 and for Product C is \$58. 1. Prepare an analysis that shows whether the 17,000 units of Product A should be processed further or not? Sell as is Process Further Sales \$ 480,000 \$ 1,266,200 Relevant costs: Costs to process further 210,000 Total relevant costs 210,000 Income (loss) \$ 480,000 \$ 1,056,200 Incremental net income (or loss) if processed further \$ 576,200 Incremental income The company should process further Hint #1 References Worksheet Difficulty: 2 Medium Learning Objective: 10-P2 Evaluate sell or process further decisions. Cobe Company has already manufactured 17,000 units of Product A at a cost of \$30 per unit. The 17,000 units can be sold at this stage for \$480,000. Alternatively,

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