Question

# Cantrell Company has already manufactured 19,000 units of Product A at a cost of \$30 per...

 Cantrell Company has already manufactured 19,000 units of Product A at a cost of \$30 per unit. The 19,000 units can be sold at this stage for \$590,000. Alternatively, the units can be further processed at a \$440,000 total additional cost and be converted into 4,800 units of Product B and 7,100 units of Product C. Per unit selling price for Product B is \$75 and for Product C is \$55.

 1 Calculate the Incremental Net Profit (or loss) if processed further. (Negative amount should be indicated by a minus sign. Omit the "\$" sign in your response.)

 Incremental net profit (or loss) \$

2.

Indicate whether the 19,000 units of Product A should be processed further or not.

 Process further Sell without further processing

 process Sell as is further Sales 590,000 750500 Relevant costs costs to process further 440,000 total relevant costs 440,000 income(loss) 590,000 310,500 incremetal net income (loss) if processed further -279,500 incremental loss the company should not process further that is sell without further processing

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