Question

Cantrell Company has already manufactured 20,000 units of Product A at a cost of $20 per unit. The 20,000 units can be sold at this stage for $570,000. 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 7,300 units of Product C. Per unit selling price for Product B is $73 and for Product C is $59.

  

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 20,000 units of Product A should be processed further or not.

	Sell without further processing
	Process further

Answer 1