Question

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

Answer 1

Product B should not be processed further.

Step-by-step 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