Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch. Heavenly Dessert 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: 1(Click the icon to view the sales revenue amounts and additional information.) Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response. Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "0" in the appropriate input box.) Sell as Cocoa Powder Sell as Chocolate Syrup Sell as Boxed Assorted Chocolates Revenue Less: Additional processing costs Net benefit Has the president made the right or wrong decision? Explain your answer. The president has made the (1) decision. Based on the analysis above, the company would realize the highest profits by (2) 1: Data Table Cocoa powder $13,500 Chocolate syrup 96,000 Boxed assorted chocolates 194,000 The cost of transforming the cocoa powder into chocolate syrup would be $65,000. Likewise, the company would incur a cost of $177,000 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 $9,500 eats up most of the cocoa powder profits. (1) right wrong (2) processing the cocoa powder into boxed chocolates. processing the cocoa powder into chocolate syrup. selling the cocoa powder as is.

Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch. Heavenly Dessert can sell the cocoa powder as is, or it can process the cocoa powder further into...

Heavenly Dessert

processes cocoa beans into cocoa powder at a processing cost of

$9,500

per batch.

Heavenly Dessert

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:

1(Click

the icon to view the sales revenue amounts and additional information.)

Has the president made the right or wrong decision? Explain your answer. Be sure to include the correct financial analysis in your response.

Begin by completing the following incremental analysis to compare selling the cocoa powder as is with processing it further. (For amounts with a value of $0, make sure to enter "0" in the appropriate input box.)

	Sell as Cocoa Powder	Sell as Chocolate Syrup	Sell as Boxed Assorted Chocolates
Revenue
Less: Additional processing costs
Net benefit

Has the president made the right or wrong decision? Explain your answer.

The president has made the

(1)

decision. Based on the analysis above, the company would realize the highest profits by

(2)

1: Data Table

Cocoa powder	$13,500
Chocolate syrup	96,000
Boxed assorted chocolates	194,000

The cost of transforming the cocoa powder into chocolate syrup would be

$65,000.

Likewise, the company would incur a cost of

$177,000

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

$9,500

eats up most of the cocoa powder profits.

(1)

right

wrong

(2)

processing the cocoa powder into boxed chocolates.

processing the cocoa powder into chocolate syrup.

selling the cocoa powder as is.

Jun 10, 2022

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Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch. Heavenly Dessert can sell the cocoa powder as is, or it can process the cocoa powder further into...

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Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch. Heavenly Dessert can sell the cocoa powder as​ is, or it can process the cocoa powder further into...

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Submit New Assignment

Heavenly Dessert processes cocoa beans into cocoa powder at a processing cost of $9,500 per batch. Heavenly Dessert can sell the cocoa powder as is, or it can process the cocoa powder further into...