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17 March, 08:56

A company has already incurred $5,600 of costs in producing 6,050 units of Product XY. Product XY can be sold as is for $27 per unit. Instead, the company could incur further processing costs of $11 per unit and sell the resulting product for $31 per unit. Should the company sell Product XY as is or process it further? (Any loss amount should be indicated with minus sign.)

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  1. 17 March, 12:17
    0
    The company should sell product XY

    Explanation:

    The computation of given question is shown below:-

    Particulars Sell as is Process Further Incremental Amount

    Selling Price

    Per unit $27 $31 - $4

    Additional processing

    Cost per unit $11 $11

    Total $27 $20 - $7

    Therefore, as we can see that the negative amount came so we sell and if we proceed the company will go to the loss.
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