A Company Has a Process That Results in 1,000 Kilograms

question 62

Multiple Choice

A company has a process that results in 1,000 kilograms of Product X that can be sold for $10 per kilogram.An alternative would be to process Product X further at a cost of $2,000 and then sell it for $13 per kilogram.Should management sell Product X now or should Product X be processed further and then sold?

• A)Process further; the company will be better off by $1,000.
• B)Sell now; the company will be better off by $1,000.
• C)Process further; the company will be better off by $3,000.
• D)Sell now; the company will be better off by $10,000.

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Definitions:

Friction Discs

Components within a mechanical clutch that provide the necessary friction to transfer torque from the driving to the driven shaft, often made of materials that improve grip and durability.

Torsional Shock

A sudden and extreme twist or strain on a mechanical component due to rapid torque variation.

Clutch Shaft

A component in a vehicle's transmission system that connects the clutch to the gearbox, transmitting power from the engine to the transmission.

Pilot Bearings

Bearings that guide and support the end of the transmission input shaft within the crankshaft.