QS 23-3 (Algo) Identifying relevant costs LO C1 Zycon has produced 8,000 units of raw milk at a $16,000 cost. These units can be sold as is to another manufacturer for $9,600. Instead, Zycon can process the units further and produce yogurt. Processing further will cost an additional $12,800 and will yield revenues of $24,000.

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QS 23-3 (Algo) Identifying relevant costs LO C1
Zycon has produced 8,000 units of raw milk at a $16,000 cost. These units can be sold as is to another manufacturer for $9,600.
Instead, Zycon can process the units further and produce yogurt. Processing further will cost an additional $12,800 and will yield
revenues of $24,000.
Identify whether each of the following is relevant or not relevant to the sell or process further decision.
Item
a. $16,000 cost already incurred to produce milk
b. $9,600 selling price for milk as is
c. $12,800 further processing costs
d. $24,000 revenue from further processing
Transcribed Image Text:QS 23-3 (Algo) Identifying relevant costs LO C1 Zycon has produced 8,000 units of raw milk at a $16,000 cost. These units can be sold as is to another manufacturer for $9,600. Instead, Zycon can process the units further and produce yogurt. Processing further will cost an additional $12,800 and will yield revenues of $24,000. Identify whether each of the following is relevant or not relevant to the sell or process further decision. Item a. $16,000 cost already incurred to produce milk b. $9,600 selling price for milk as is c. $12,800 further processing costs d. $24,000 revenue from further processing
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