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Cobe Company has already manufactured 18,000 units of Product A at a cost of $30...

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Accounting

Cobe Company has already manufactured 18,000 units of Product A at a cost of $30 per unit. The 18,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $270,000 total additional cost and be converted into 5,500 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $108 and for Product C is $51. Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not.

Sell as is Process Further
Sales
Relevant costs:
Manufacturing costs incurred to date
Total relevant costs
Income (loss)
Incremental net income (or loss) if processed further
The company should

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