Listmann Corp Which Product(s)should Not Be Processed Further?
A)Premier

question 95

Multiple Choice

Listmann Corp.processes four different products that can either be sold as is or processed further.
Listed below are sales and additional cost data:
$$\begin{array}{l}\begin{array} { l r r c } \text { } & \text { Sales Value with no further } & \text { Additional Processing } & \text { Sales Value after } \\\text { Product } & \text { Processing } & \text { Costs } & \text { further processing } \\\text { Premier } & \$ 1,350 & \$ 900 & \$ 2,700 \\\text { Deluxe } & 450 & 225 & 630 \\\text { Super } & 900 & 450 & 1,800 \\\text { Basic } & 90 & 45 & 180\end{array}\end{array}$$ Which product(s) should not be processed further?

• A)Premier.
• B)Deluxe.
• C)Super.
• D)Basic.
• E)Premier and Basic.

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Definitions:

Tax

Compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Deadweight Loss

The reduction in economic productivity resulting from a failure to reach or the impossibility of reaching the market equilibrium for a particular product or service.

Excise Tax

A tax on specific goods or services, often with the goal of discouraging their use or generating revenue.

Supply Curve

A graphical representation of the relationship between the price of a good and the amount of it suppliers are willing to offer for sale, holding other factors constant.