Cobe company has already manufactured 18000 units of

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Cobe Company has already manufactured 18,000 units of Product A at a cost of $15 per unit. The 18,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $230,000 total additional cost and be converted into 5,500 units of Product B and 11,900 units of Product C. Per unit selling price for Product B is $102 and for Product C is $50.

Prepare an analysis that shows whether the 18,000 units of Product A should be processed further or not.

Reference no: EM13568002

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