Marcus Company Gathered the Following Data About the Three Products

question 148

Multiple Choice

Marcus Company gathered the following data about the three products that it produces: $\begin{array}{rrrr}& \text { Present } & \text { Estimated Additional } & \text { Estimated Sales } \\\text { Product } & \text { SalesValue } & \text { Processing Costs } & \text { if Processed Further }\\\mathrm{A} & \$ 12,000 & \$ 8,000 & \$ 21,000 \\\mathrm{~B} & 14,000 & 5,000 & 18,000 \\\mathrm{C} & 11,000 & 3,000 & 16,000\end{array}$ Which of the products should not be processed further?

• A)Product A
• B)Product B
• C)Product C
• D)Products A and C

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Definitions:

Credit Balance

The amount appearing on the credit side of an account, indicating the total credits exceed the total debits.

Formal Written Instrument

A legally binding document or contract clearly outlining the terms and conditions agreed upon by the parties involved.

Credit

The trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources (or other materials of equal value) at a later date.

Notes Receivable

Written promises for amounts to be received by a business, typically including interest, from individuals or other entities.