Cocoa powder ...................... $15,500 Chocolate syrup ........................... $101,000 Boxed assorted chocolates .......... $194,000 Cocoaheaven processes cocoa beans

 

Cocoa powder ...................... $15,500 

Chocolate syrup ........................... $101,000 

Boxed assorted chocolates .......... $194,000

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Cocoaheaven processes cocoa beans into cocoa powder at a processing cost of $9,800 per batch. Cocoaheaven can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revende: (Click the icon to view the sales revenue.) The cost of transforming the cocoa powder into chocolate syrup would be $71,000. Likewise, the company would incur $183,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates owing to its high sales value and to the fact that the $9,800 cost of processing cocoa beans "eats up" most of the cocoa powder profits. Has the president made the right or wrong decision? Explain your answer. Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "O" for any zero amounts.) Sell as Sell as Sell as Boxed Cocoa Chocolate Assorted Powder Syrup Chocolates Less: Net benefit Cocoaheaven processes cocoa beans into cocoa powder at a processing cost of $9,800 per batch. Cocoaheaven can sell the cocoa powder as is, or it can process the cocoa powder further into chocolate syrup or boxed assorted chocolates. Once processed, each batch of cocoa beans would result in the following sales revende: (Click the icon to view the sales revenue.) The cost of transforming the cocoa powder into chocolate syrup would be $71,000. Likewise, the company would incur $183,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates owing to its high sales value and to the fact that the $9,800 cost of processing cocoa beans "eats up" most of the cocoa powder profits. Has the president made the right or wrong decision? Explain your answer. Complete the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Enter a "O" for any zero amounts.) Sell as Sell as Sell as Boxed Cocoa Chocolate Assorted Powder Syrup Chocolates Less: Net benefit

Answer rating: 100% (QA)

Incremental analysis Sell as cocoa powder Sell as c... View the full answer