Solution :
sales as is | Process further | ||
sales | $430,000 | 1,198,600 | |
relevent cost: | |||
manufacturing cost (22,000*30) | $660,000 | $660,000 | |
additional cost | $200,000 | ||
total relevant cost | $660,000 | $860,000 | |
Income (loss) | ($230,000) | $338,600 | |
incremental net income if processed further | $568,600 |
The Company shoud Process further to increase their income.
sell or process further Cobe Company has already manufactured 22,000 units of Product A at a...
How do I calculate the income (loss)? Cobe Company has already manufactured 22,000 units of Product A at a cost of $20 per unit. The 22,000 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 5,900 units of Product B and 11,300 units of Product C. Per unit selling price for Product B is $109 and for Product C is $56. 1. Prepare...
Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 16,000 units of Product A at a cost of $20 per unit. The 16,000 units can be sold at this stage for $470.000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5100 units of Product B and 12,000 units of Product C. Per unit selling price for Product B is $108 and for Product is $60. 1. Prepare...
Cobe Company has already manufactured 16,000 units of Product A at a cost of $25 per unit. The 16,000 units can be sold at this stage for $430,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,400 units of Product B and 11,800 units of Product C. Per unit selling price for Product B is $103 and for Product C is $57. 1. Prepare an analysis that shows whether the 16,000...
Exercise 23-8 Sell or process further LO A1 Cobe Company has already manufactured 20,000 units of Product A at a cost of $30 per unit. The 20,000 units can be sold at this stage for $420,000. 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 11,300 units of Product C. Per unit selling price for Product B is $102 and for Product C is $59. 1....
Cobe Company has already manufactured 16,000 units of Product A at a cost of $20 per unit. The 16,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5700 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $105 and for Product C is $60. 1. Prepare an analysis that shows whether the 16,000...
Cobe Company has already manufactured 17,000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $240,000 total additional cost and be converted into 5,400 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $110 and for Product C is $53. 1. Prepare an analysis that shows whether the 17,000...
Cobe Company has already manufactured 21,000 units of Product A at a cost of $15 per unit. The 21,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $260,000 total additional cost and be converted into 5,500 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $105 and for Product C is $54. 1. Prepare an analysis that shows whether the 21,000...
Cobe Company has already manufactured 16,000 units of Product A at a cost of $20 per unit. The 16,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5700 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $105 and for Product C is $60. 1. Prepare an analysis that shows whether the 16,000...
Cobe Company has already manufactured 16,000 units of Product A at a cost of $25 per unit. The 16,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $260,000 total additional cost and be converted into 6,000 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $101 and for Product C is $51. 1. Prepare an analysis that shows whether the 16,000...
Cobe Company has already manufactured 16,000 units of Product A at a cost of $20 per unit. The 16,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5700 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $105 and for Product C is $60. 1. Prepare an analysis that shows whether the 16,000...