Question

Check my work Exercise 23-3 Sell or process further LO P2 points Cobe Company has already manufactured 23,000 units of Product A at a cost of $25 per unit. The 23,000 units can be sold at this stage for $440,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,700 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $108 and for Product C is $60. eBook 1. Prepare an analysis that shows whether the 23,000 units of Product A should be processed further or not? Hint Print Sell as is Process Further References Sales Relevant costs: Total relevant costs Income (loss) Incremental net income (or loss) if processed further The company should

Answer 1

solutions Givendata, Cobe company has already manufactured 23000 units of product a at a cost of & as per unit The 23000 units can be sold at this stage for uuo00 total additional cost $290000 cand be converte into 5700 units of product B and 11900 units of product Co. per unit selling price for produkt ß is $ 108 and for product c is $60. Cobe company particalars sell as is i process furthe Sales 440 000 1350 000 Relevant costs cost to process further. O 290000 Total Relevant cost 290000 Income. (Loss) 1090000 Incremental net income (less) if farther process $ 650000