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Cantrell Company has already manufactured 21,000 units of Product A at a cost of $25 per unit. The 21,000 units can be sold at this stage for $540,000. Alternatively, the units can be further processed at a $360,000 total additional cost and be converted into 4,700 units of Product B and 7,700 units of Product C. Per unit selling price for Product B is $74 and for Product C is $55. Calculate the Incremental Net Income (or loss) if processed further. Indicate whether the 21,000 units of Product A should be processed further or not.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9988854

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