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
Chapter1: Financial Statements And Business Decisions
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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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