Denver Co. needs your help in determining whether they should sell as is or process further...
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Denver Co. needs your help in determining whether they should sell as is or process further a component in their product line. The selling price of this product is $11.55 per unit. Currently, the costs to produce 1 unit of this product are as follows: Direct Materials Direct Labor Variable Man. Overhead Fixed Man. Overhead $5.35 2.50 0.75 0.90 $9.50 If Denver Co. decides to process the product further, direct materials per unit will increase by $2.00, direct labor will increase by $0.75, and variable man. overhead will increase by $0.85. There is no expected increase to fixed man. overhead. If they decide to process this product further, they will be able to sell it for $15.00 per unit. Prepare an incremental analysis report for Denver Co. to help management in this sell as is or process further decision. Be sure to organize your work well and to name (label) all numbers. Show all calculations Denver Co. needs your help in determining whether they should sell as is or process further a component in their product line. The selling price of this product is $11.55 per unit. Currently, the costs to produce 1 unit of this product are as follows: Direct Materials Direct Labor Variable Man. Overhead Fixed Man. Overhead $5.35 2.50 0.75 0.90 $9.50 If Denver Co. decides to process the product further, direct materials per unit will increase by $2.00, direct labor will increase by $0.75, and variable man. overhead will increase by $0.85. There is no expected increase to fixed man. overhead. If they decide to process this product further, they will be able to sell it for $15.00 per unit. Prepare an incremental analysis report for Denver Co. to help management in this sell as is or process further decision. Be sure to organize your work well and to name (label) all numbers. Show all calculations
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