Cocoaheaven processes cocoa beans into cocoa powder at a processing cost of $10,300 per batch. Cocoaheaven can sell the cocoa powder asis, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Onceprocessed, each batch of cocoa beans would result in the following salesrevenue:

Cocoa powder 15,500

Chocolate syrup 97,000

Boxed assorted chocolates 192,000

The cost of transforming the cocoa powder into chocolate syrup would be $68,000. Likewise, the company would incur a cost of $181,000 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 $10,300 eats up most of the cocoa powder profits.

Has the president made the right or wrongdecision? 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 inputbox.)