its profit.

LO $7-2,-6$ PB$7-7$ Analyzing Sell$-$or$-$Process$-$Further Decision

Page $347$

Golden Trophy Inc. manufactures trophies and other promotional awards. The company uses an extrusion process in which metals and plastic are molded into a metal base of different sizes and shapes. Managers can either sell the unfinished base to other trophy companies or incur additional conversion costs to convert it into a finished trophy. The cost incurred to produce the metal bases is $$360,000,$ which is allocated to the products based on the sales value of the metal base. Following is information concerning the products that can be produced:

$\backslash$table$[[$Product$,$Number of Units,Selling Price of the Metal Vase,Selling Price of the Finished Trophy,Additional Processing Cost$],[$Trophy A$,4,500,$$$105\mathrm{.}00,$$$110\mathrm{.}80,$$$46,200$