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24 May, 20:44

Crane Company gathered the following data about the three products that it produces: Product Present Sales Value Estimated Additional Processing Costs Estimated Sales if Processed Further A $12800 $8400 $22200 B 14800 5400 19200 C 11800 3400 17200 Which of the products should not be processed further? Product B Product A Product C Products A and C

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  1. 24 May, 20:47
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    Product B should not be processed further.

    Explanation:

    Giving the following information:

    Product A

    Sales = $12800

    Additional Processing = $8400

    New Sale = $22200

    Product B:

    Sales = 14800

    Additional Processing = 5400

    New sale = 19200

    Product C:

    Sales = 11800

    Additional Processing = 3400

    new sales = 17200

    Product A = (22,200 - 12,800) - 8,400 = $1,000

    Product B = (19,200 - 14,800) - 5,400 = - $1,000

    Product C = (17,200 - 11,800) - 3,400 = $2,000
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