A company has a process that results in 26000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $174200 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action? Sell now, the company will be better off by $18200. Process further, the company will be better off by $156000. Process further, the company will be better off by $18200. Sell now, the company will be better off by $174200.
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