A Company Has a Process That Results in 15,000 Pounds

question 152

Multiple Choice

A company has a process that results in 15,000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $100,000 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?

• A) Process further, the company will be better off by $10,000.
• B) Sell now, the company will be better off by $10,000.
• C) Process further, the company will be better off by $90,000.
• D) Sell now, the company will be better off by $100,000.

---

Definitions:

Poverty Line

The minimum level of income deemed adequate in a particular country to live on, used as a standard to classify people into economic categories.

Basic Subsistence

The minimum resources necessary for a person to live, including food, water, and shelter.

Older Adults

Individuals who are in the later stage of their life, often defined as being 65 years or older.

Low Income Families

Households earning significantly less than the average income, often qualifying them for certain types of government assistance.