Question

instead of selling the products at split off, excelsior could spend an additional $55,000 to process product a further, which would result in a new sales price for product a of $70 per unit. excelsior could also process product b further at a cost of $70,000, which would result in a new sales price for product b of $80 per unit and could process product c further at a cost of (use the last five digits of your student id for the cost of further processing product c), resulting in a new sales price for product c of $45 per unit. the three tasks to complete in the spreadsheet are: complete the schedule provided to illustrate the financial advantage or disadvantage of further processing each of the products (be sure disadvantages appear as negative numbers).

Answer 1

Excelsior is considering further processing three products: A, B, and C, and wants to determine the financial advantage or disadvantage of each option. By comparing the additional processing costs with the new sales prices, Excelsior can determine which products would be advantageous to process further.

Step-by-step explanation:

In this scenario, Excelsior is considering whether to further process three products: A, B, and C. Processing product A further would cost $55,000 and result in a new sales price of $70 per unit. Processing product B further would cost $70,000 and result in a new sales price of $80 per unit. Processing product C further would cost the last five digits of your student ID and result in a new sales price of $45 per unit.

To determine the financial advantage or disadvantage of further processing each product, you need to compare the additional processing costs with the increase in sales price. For example, if the increase in sales revenue from processing product A further is greater than $55,000, it would be advantageous to do so. If the increase in sales revenue is less than $55,000, it would be a disadvantage.

By completing a schedule that compares the additional processing costs with the new sales prices for each product, you can determine which products would provide a financial advantage and which would result in a disadvantage.