Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $$9,700$ per batch. Chocoheaven can sell the cocoa powder as is$,$ or it can

process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the

following sales revenue:

$($Click the icon to view the sales revenue amounts and additional information.$)$

Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.

Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. $($For amounts with a value of $$0,$

make sure to enter $"0"$ in the appropriate input box.$)$

Revenue

Less: Additional processing costs

Data table

The cost of transforming the cocoa powder into chocolate syrup would be $$72,000.$

Likewise, the company would incur a cost of $$183,000$ to transform the cocoa powder into

boxed assorted chocolates. The company president has decided to make boxed assorted

chocolates due to its high sales value and to the fact that the cocoa bean processing cost

of $$9,700$ eats up most of the cocoa powder profits.