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Prepare analysis that shows units of Product A processed

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Reference no: EM133096993

Question - Cobe Company has already manufactured 247000 units of Product A at a cost of $25 per unit. The 24,000 units can be sold at this stage for $490,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,100 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $100 and for Product C is $50.

Required - Prepare an analysis that shows whether the 24,000 units of Product A should be processed further or not?

Reference no: EM133096993

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