Question: Cobe Company has already manufactured 28 000 units of Product A
Cobe Company has already manufactured 28,000 units of Product A at a cost of $ 28 per unit. The 28,000 units can be sold at this stage for $ 700,000. Alternatively, the units can be further processed at a $ 420,000 total additional cost and be converted into 5,600 units of Product B and 11,200 units of Product C. Per unit selling price for Product B is $ 105 and for Product C is $ 70. Prepare an analysis that shows whether the 28,000 units of Product A should be processed further or not.
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