Heritage company has already manufactured 28000 units of

Reference no: EM13589630

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?

Reference no: EM13589630

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