Question: Sell as is or Process Further CocoaJoy processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Each batch of

Sell as is or Process Further CocoaJoy processes cocoa beans into cocoa

Sell as is or Process Further CocoaJoy processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Each batch of cocoa powder sells for $15,000. CocoaJoy can also process the cocoa powder further into chocolate syrup or boxed assorted chocolates. The cost of this additional processing for chocolate syrup is $67,000 while the cost of additional processing for boxed assorted chocolates is $175,000. A batch of chocolate syrup sells for $101,000 while a batch of boxed assorted chocolates sells for $196,000. What should CocoaJoy do and why? - A. Process further and sell boxed assorted chocolates CocoaJoy will be better off by a $6,000 net increase in operating income if boxed assorted chocolates are sold vs. selling cocoa powder B. Process further and sell boxed assorted chocolates - CocoaJoy will be better off by a $16,000 net increase in operating income if boxed assorted chocolates are sold vs. selling cocoa powder C. Process further and sell chocolate syrup - CocoaJoy will be better off by a $29,000 net increase in operating income if chocolate syprup is sold vs. selling cocoa powder D. Process further and sell chocolate syrup - CocoaJoy will be better off by a $19,000 net increase in operating income if chocolate syrup is sold vs. selling cocoa powder E.

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