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Two Different Products Are Being Considered for Production

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Two different products are being considered for production. The cost structures are listed below on a per unit basis. Which product should be produced, using revenue retrieval analysis?
 Product Blue  Resale Revenue  Recycling  Revenue  Processing Cost  Disposal Cost  Part A $7.25$3.81$1.26$2.48 Part B $6.78$2.14$1.84$1.07 Part C $4.13$0.87$0.92$1.22\begin{array} { | l | l | l | l | l | } \hline \text { Product Blue } & \text { Resale Revenue } & \begin{array} { l } \text { Recycling } \\\text { Revenue }\end{array} & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 7.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 6.78 & \$ 2.14 & \$ 1.84 & \$ 1.07 \\\hline \text { Part C } & \$ 4.13 & \$ 0.87 & \$ 0.92 & \$ 1.22 \\\hline\end{array}  Product  Recycling  Yellow  Resale Revenue  Revenue  Processing Cost  Disposal Cost  Part A $5.84$6.54$2.67$0.88 Part B $7.14$5.45$4.48$0.97 Part C $0.96$0.69$0.41$0.31\begin{array} {| l | l | l | l | l | } \hline \text { Product } & & \text { Recycling } & & \\\text { Yellow } & \text { Resale Revenue } & \text { Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 5.84 & \$ 6.54 & \$ 2.67 & \$ 0.88 \\\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 4.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.96 & \$ 0.69 & \$ 0.41 & \$ 0.31 \\\hline\end{array}

Realize the importance of demographic segments (age, gender, race) in labor statistics.
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Definitions:

Density Function

A mathematical function that specifies the probability of a random variable taking on certain values.

Parameter

A quantity that influences the output or behavior of a mathematical function or statistical model, often fixed during the analysis.

Exponential Random Variable

A type of continuous random variable that is used to model time until an event occurs, with a constant hazard rate.

Exponential Distribution

A continuous probability distribution that describes the times between events in a Poisson process, representing a constant hazard rate.

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