Sell as is. Further process
sales. 450000. 1198500 ( 5500*105+11500*54)
relevant cost
Manufacturing cost 315000(21000*15). 315000
further processing cost. 0. 260000
Total relevant cost. 315000. 575000
income. 135000. 623500
incremental net income if processed further 488500
the company should process further the product
if you have any doubt please write in comment section and do not forget to click like button.
Cobe Company has already manufactured 21,000 units of Product A at a cost of $15 per...
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 21,000 units of Product A at a cost of $20 per unit. The 21,000 units can be sold at this stage for $410,000. Alternatively. the units can be further processed at a $290,000 total additional cost and be converted into 5,100 units of Product B and 11,000 units of Product C. Per unit selling price for Product B is $102 and for Product C is $57 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 $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...
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 $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...
sell or process further Cobe Company has already manufactured 22,000 units of Product A at a cost of $30 per unit. The 22,000 units can be sold at this stage for $430,000. Alternatively, the units can be further processed at a $200,000 total additional cost and be converted into 5.000 units of Product B and 11.700 units of Product C. Per unit selling price for Product B is $104 and for Product CS $58 1. Prepare an analysis that shows...
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....
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...