Cobe Company has already manufactured 23,000 units of Product A at a cost of $30 per unit. The 23,000 units can be sold at this stage for $450,000. Alternatively, the units can be further processed at a $250,000 total additional cost and be converted into 5,900 units of Product B and 11,400 units of Product C. Per unit selling price for Product B is $109 and for Product C is $54. 1. Prepare an analysis that shows whether the 23,000 units of Product A should be processed further or not.

Net advantage from further processing   $558,700

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  

Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .  

                                                                                                           $

Sales revenue after the split-off point

Product B ( 5,900 ×109)                                                                 643,100                  

Product C (11,400× $54)                                                                615,600

Sales revenue at the split-off point                                              450,000

Additional sales revenue                                                                808,700

Further processing cost                                                                  (250,000)

Net advantage from further processing                                          558,700

Note that all costs incurred up to the split-off points are irrelevant i.e $30 per unit to produce product A. Whether or  not  the products are processed further they would be incurred. As such, they would not be considered in the analysis.

answer; i believe the correct answer is (treasury bills);

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this