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Question
Submitted by ede.wi on Sun, 2012-04-01 19:59
due on Thu, 2012-04-05 20:01
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A company has a process that results in 6,000 pounds of Product A that can be sold for $8 per...

A company has a process that results in 6,000 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 $40,000 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?

Answer
Submitted by Asma on Mon, 2012-04-02 04:30
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Sell now or process Further

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Sell now, the company xxxx be better xxx by xxxxxx

xxx xxxxx decision rule is to xxxxxxx further xx long as the xxxxxxxxxxx xxxxxxx xxxx xxxx processing xxxxxxx the xxxxxxxxxxx processing xxxxxx Incremental xxxxxxx x ($14 - xxx x 6,000 xxxxxx = $36,000. The xxxxxxxxxxx cost xx $40,000 exceeds the xxxxxxxxxxx xxxxxxx xx xxxxxxx by 4,000. So, xxxxxxx should xxxx xxx xxxxxxx now.


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Answer
Submitted by mf_faani on Wed, 2012-04-04 11:58
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management should...........full answer in attached file.

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xxxxxx

xxxxx
xxxxxxxxxx xxxxxxx{($14 x x 8)x6000} xxxxxxx
xxxxxxxxxx cost $40,000
xxxxxxxxxxxxx if further xxxxxxxxx$(4,000)
xxxxx with xx xxxxxxxxxx xxxxxxxxxx xxxxxx of xxxxxxxx xxxxxxx xxx only xxxx xxxxxxx of additional xxxxxxxx
Management should xxxx the xxxxxxx A now.


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