Question

Listmann Corp. processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data: Product Sales Value with no further Processing Additional Processing Costs Sales Value after further processing Premier $ 1,350 $ 900 $ 2,700 Deluxe 450 225 630 Super 900 450 1,800 Basic 90 45 180 Which product(s) should not be processed further?

Answer 1

Which product(s) should not be processed further?

Deluxe products should not be processed further because the cost of further processing is higher than the additional benefits.

Step-by-step explanation:

Product Sales value with Additional processing Sales value after

no further processing costs further processing

Premier $1,350 $900 $2,700

Deluxe $450 $225 $630

Super $900 $450 $1,800

Basic $90 $45 $180

further processing added value difference

costs

Premier $900 $1,350 $450

Deluxe $225 $180 ($180)

Super $450 $900 $450

Basic $45 $90 $45