A Company Has Already Incurred a $24,000 Cost in Partially

question 72

Multiple Choice

A company has already incurred a $24,000 cost in partially producing its two products.Their selling prices when partially and fully processed are shown in the following table with the additional costs necessary to finish their processing.Based on this information, should any products be processed further? $$\begin{array} { | c | c | c | c | } \hline \text { Product } & \begin{array} { c } \text { Unfinished } \\\text { Selling Price }\end{array} & \begin{array} { c } \text { Finished } \\\text { Selling Price }\end{array} & \begin{array} { c } \text { Further } \\\text { Processing } \\\text { Costs }\end{array} \\\hline \text { A } & \$ 900 & \$ 1,000 & \$ 65 \\\hline \text { B } & 600 & 675 & 76 \\\hline\end{array}$$

• A)Both product A and product B should be processed further.
• B)Neither product A nor product B should be processed further.
• C)Only product B should be processed further.
• D)Only product A should be processed further.
• E)A processing further decision cannot be made from the available data.

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