2 2 points Exercise 10-3 (Static) Sell or process LO P2 Cobe Company has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $12,000, and the finished cabinets could be sold for $80,000 (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold? a) elor Process Analysis Revenue Sell Asis Process Further Coats Income Incremental income foss) to process further (b) The company should Check 3 2 Exercise 10-4 (Static) Scrap or rework LO P2 A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that have already cost $132,000 to manufacture. The units can be sold as scrap for $78,000 or reworked for $99,000 and then sold for $187,000 (a) Prepare a scrap or rework analysis of income effects. (b) Should the company sell the units as scrap or rework them? til Berap Rework Alper Rework Analysis Revenue from scrappedreworked units Cost of reworked units Income Incremental income The company should