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Category > Accounting Posted 29 May 2017 My Price 8.00

Heritage Company has already manufactured 28,000 units of Product A

Heritage Company has already manufactured 28,000 units of Product A at a cost of $28 per unit. The 28,000 units can be sold at this stage for $700,000. Alternatively, it can be further processed at $420,000 total additional cost and be converted into 5,600 units of Product B and 11,200 units of Product C. Per unit selling price of Product B is $105 and for Product C $70. Prepare an anlysis that shows whether the 28,000 units of Product A should be processed further or sold at split-off?

Answers

Alpha Geek
(8)
Status NEW Posted 29 May 2017 11:05 AM My Price 8.00

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Attachments

file 1496059073-455141_1_636315524046887725_Sell-or-process-decision.xlsx preview (226 words )
45-----------514-----------1&a-----------mp;-----------amp-----------;in-----------foI-----------d=5-----------067-----------34s-----------ell----------- or----------- Pr-----------oce-----------ssH-----------eri-----------tag-----------e C-----------omp-----------any----------- ha-----------s a-----------lre-----------ady----------- ma-----------nuf-----------act-----------ure-----------d 2-----------8,0-----------00 -----------uni-----------ts -----------of -----------Pro-----------duc-----------t A----------- at----------- a -----------cos-----------t o-----------f $-----------28 -----------per----------- un-----------it.----------- Th-----------e 2-----------8,0-----------00 -----------uni-----------ts -----------can----------- be----------- so-----------ld -----------at -----------thi-----------s s-----------tag-----------e f-----------or -----------$70-----------0,0-----------00.----------- Al-----------ter-----------nat-----------ive-----------ly,----------- it----------- ca-----------n b-----------e f-----------urt-----------her----------- pr-----------oce-----------sse-----------d a-----------t $-----------420-----------,00-----------0 t-----------ota-----------l a-----------ddi-----------tio-----------nal----------- co-----------st -----------and----------- be----------- co-----------nve-----------rte-----------d i-----------nto----------- 5,-----------600----------- un-----------its----------- of----------- Pr-----------odu-----------ct -----------B a-----------nd -----------11,-----------200----------- un-----------its----------- of----------- Pr-----------odu-----------ct -----------C. -----------Per----------- un-----------it -----------sel-----------lin-----------g p-----------ric-----------e o-----------f P-----------rod-----------uct----------- B -----------is -----------$10-----------5 a-----------nd -----------for----------- Pr-----------odu-----------ct -----------C $-----------70.----------- Un-----------its-----------per----------- un-----------it
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