Question: Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 15,000 units of Product A at a cost of $15 per unit.

 Exercise 10-3 Sell or process further LO P2 Cobe Company has

Exercise 10-3 Sell or process further LO P2 Cobe Company has already manufactured 15,000 units of Product A at a cost of $15 per unit. The 15,000 units can be sold at this stage for $500,000. Alternatively, the units can be further processed at a $250,000 total additional cost and be converted into 5,900 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $101 and for Product C is $52. 1. Prepare an analysis that shows whether the 15,000 units of Product A should be processed further or not? X Answer is not complete. Sell as is Process Further 1,188,700 Sales $ 450,000 $ Relevant costs: 225,000 X Manufacturing costs incurred to date Costs to process further Total relevant costs 225,000 713,700 Income (loss) $ 225,000 Incremental net income (or loss) if processed further The company should process further

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