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Heavenly Chocolates processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Heavenly Chocolates can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed. each batch of cocoa beans would result in the following sales revenue: Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Complete all input fields. Enter a 0 for any zero balances.) Revenue Less: Additional processing costs Net benefit Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates X Sales Revenue Amounts and Additional Information Cocoa powder Chocolate syrup Boxed assorted chocolates $ 16,500 104,000 200,000 The cost of transforming the cocoa powder into chocolate syrup would be $71,000. Likewise, the company would incur a cost of $183,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $10,000 eats up most of the cocoa powder profits. Print Done

Heavenly Chocolates processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Heavenly Chocolates can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed. each batch of cocoa beans would result in the following sales revenue: Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Complete all input fields. Enter a 0 for any zero balances.) Revenue Less: Additional processing costs Net benefit Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates X Sales Revenue Amounts and Additional Information Cocoa powder Chocolate syrup Boxed assorted chocolates $ 16,500 104,000 200,000 The cost of transforming the cocoa powder into chocolate syrup would be $71,000. Likewise, the company would incur a cost of $183,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $10,000 eats up most of the cocoa powder profits. Print Done

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Heavenly Chocolates processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Heavenly Chocolates can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed. each batch of cocoa beans would result in the following sales revenue: Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Complete all input fields. Enter a 0 for any zero balances.) Revenue Less: Additional processing costs Net benefit Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates X Sales Revenue Amounts and Additional Information Cocoa powder Chocolate syrup Boxed assorted chocolates $ 16,500 104,000 200,000 The cost of transforming the cocoa powder into chocolate syrup would be $71,000. Likewise, the company would incur a cost of $183,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $10,000 eats up most of the cocoa powder profits. Print Done
Transcribed Image Text:Heavenly Chocolates processes cocoa beans into cocoa powder at a processing cost of $10,000 per batch. Heavenly Chocolates can sell the cocoa powder as is, or it can process the cocoa powder further into either chocolate syrup or boxed assorted chocolates. Once processed. each batch of cocoa beans would result in the following sales revenue: Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (Complete all input fields. Enter a 0 for any zero balances.) Revenue Less: Additional processing costs Net benefit Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates X Sales Revenue Amounts and Additional Information Cocoa powder Chocolate syrup Boxed assorted chocolates $ 16,500 104,000 200,000 The cost of transforming the cocoa powder into chocolate syrup would be $71,000. Likewise, the company would incur a cost of $183,000 to transform the cocoa powder into boxed assorted chocolates. The company president has decided to make boxed assorted chocolates due to its high sales value and to the fact that the cocoa bean processing cost of $10,000 eats up most of the cocoa powder profits. Print Done
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