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ID: 2395926 • Letter: F

Question

Firefox File Edit View History Bookmarks Tools Window Help Firefooc File Edit View History Br X | ??100%) Sat 7:20 PM Atika Ishtiaq a E Chegg Study l Guided Solution Firefox File Edit View History B: X T, https:/ t.mheducation.com/flow/connect.html .Search Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Exercise 10-8 Sell or process further LO A1 Cobe Company has already manufactured 22,000 units of Product A at a cost of $25 per unit. The 22,000 units can be sold at this stage for $500,000. Alternatively, the units can be further processed at a $300,000 total additional cost and be converted into 5,200 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $103 and for Product C is $52 points 1. Prepare an analysis that shows whether the 22,000 units of Product A should be processed further or not. Answer is not complete. Sell as is urther Sales $ 500,0001,154,400 Relevant costs: Costs to process further 300,000 Total relevant costs Income (loss) Incremental net income (or loss) if processed further income The company should process further Graw Prev1 of 1 Next

Explanation / Answer

Schedule :

Sell as is Process further Sales 500000 1154400 Relevant cost Cost to process further 0 300000 Total relevant cost 0 300000 Income (loss) 500000 854400 Incremental net income (or loss) if processed further 354400 Incremental income The company should Process further
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