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Exercise 25-23 Sell or process further LO A1 Cobe Company has already manufactured 24,000 units...

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Accounting

Exercise 25-23 Sell or process further LO A1

Cobe Company has already manufactured 24,000 units of Product A at a cost of $15 per unit. The 24,000 units can be sold at this stage for $410,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,900 units of Product B and 11,300 units of Product C. Per unit selling price for Product B is $102 and for Product C is $58. Prepare an analysis that shows whether the 24,000 units of Product A should be processed further or not.

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