Incremental Net Income Assignment
February 18th, 2020
Cobe Company has already manufactured 19,000 units of Product A at a cost of $15 per unit. The 19,000 units can be sold at this stage for $500,000. Alternatively, the units can be further processed at a $280,000 total additional cost and be converted into 5,800 units of Product B and 11,600 units of Product C. Per unit selling price for Product Bis $102 and for Product C is $60.
1. Prepare an analysis that shows whether the 19,000 units of Product A should be processed further or not Sell as is Process Further Sales Relevant costs Total relevant costs Income (loss) Incremental net income (or loss) il processed further The company should . .