Cobe Company has already manufactured 21,000 units of Product A at a cost of $15 per unit. The 21,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $290,000 total additional cost and be converted into 5,800 units of Product B and 12,000 units of Product C. Per unit selling price for Product B is $105 and for Product C is $50.
Prepare an analysis that shows whether the 21,000 units of Product A should be processed further or not.
Sell as in Process further Sales Relevant costs:
Total relevant costs Income (loss) Incremental net income (or loss) if processed further
The company should _______________________