Cocoa powder Chocolate syrup Boxed assorted chocolates $ 14,500 103,000 204,000
Making sell or process further decisions
Heavenly Dessert processes cocoa beans into cocoa powder at a
The cost of transforming the cocoa powder into chocolate syrup would be $72,000. 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 their high sales value and to the fact that the cocoa be processing cost of $9,700 eats up most of the cocoa powder profits.
Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.
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