Ask Question
8 May, 02:33

A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound. An alternative would be to process Product A further at a cost of $13,600 and then sell it for $23.00 per pound. What is the additional profit (loss) that would result from processing the product further?

+3
Answers (1)
  1. 8 May, 05:52
    0
    If the company process further the units, income will decrease by $600.

    Explanation:

    Giving the following information:

    A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound.

    An alternative would be to process Product A further for $13,600 and then sell it for $23.00 per pound.

    We need to determine the result of further processing the product.

    Sell as-is:

    Effect on income = 1,300*13 = $16,900 increase

    Continue processing:

    Effect on income = 1,300*23 - 13,600 = $16,300

    It is more profitable to sell the units before further processing.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company has a process that results in 1,300 pounds of Product A that can be sold for $13.00 per pound. An alternative would be to process ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers