Nichols Corporation Is Trying to Decide Whether to Sell Its

question 12

Multiple Choice

Nichols Corporation is trying to decide whether to sell its carpet-quality thread or to manufacture the carpets itself.Under which of the following conditions should Nichols sell its thread?

• A)The incremental revenue from further processing is less than the incremental costs.
• B)The incremental revenue from further processing is greater than the incremental costs.
• C)The incremental cost from further processing is less than the cost of manufacturing the thread.
• D)The incremental cost from further processing is greater than the cost of manufacturing the thread.

---

Definitions:

Dose

The amount of a drug given or taken at one time.

Tablespoon

A measure of volume used commonly in cooking, equivalent to approximately 15 milliliters.

Medication

Substances used to diagnose, treat, cure, or prevent illnesses or diseases.

Kilograms

A unit of mass in the metric system, equal to one thousand grams and used worldwide as a standard for quantifying mass in many contexts.