Two Different Products Are Being Considered for Production

question 4

Essay

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?
$$\begin{array} { | l | l | l | l | l | } \hline \text { Product Blue } & \text { Resale Revenue } & \begin{array} { l } \text { Recycling } \\\text { Revenue }\end{array} & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.89 & \$ 3.81 & \$ 1.55 & \$ 2.48 \\\hline \text { Part B } & \$ 5.62 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.98 & \$ 0.87 & \$ 0.99 & \$ 0 \\\hline\end{array}$$ $$\begin{array} {| l | l | l | l | l | } \hline \text { Product } & & \text { Recycling } & & \\\text { Yellow } & \text { Resale Revenue } & \text { Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 5.84 & \$ 6.97 & \$ 2.16 & \$ 0.42 \\\hline \text { Part B } & \$ 6.14 & \$ 5.01 & \$ 3.48 & \$ 0.59 \\\hline \text { Part C } & \$ 0.85 & \$ 0.66 & \$ 0.41 & \$ 0.31 \\\hline\end{array}$$