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Cantrell Company has already manufactured 20,000 units of Product A at a cost of $20per unit. The 20,000 units can be sold at this stage for $500,000....
Cantrell Company has already manufactured 20,000 units of Product A at a cost of $20per unit. The 20,000 units can be sold at this stage for $500,000. Alternatively, the unitscan be further processed at a $300,000 total additional cost and be converted into 4,000units of Product B and 8,000 units of Product C. Per unit selling price for Product B is$75 and for Product C is $50. Prepare an analysis that shows whether or not the 20,000units of Product A should be processed further.