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

question 118

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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Definitions:

Freedom

The privilege or capacity to operate, communicate, or speculate without being hampered or constricted.

Columbian Exchange

The widespread transfer of plants, animals, culture, human populations, technology, diseases, and ideas between the Americas and the Old World following Columbus's voyages.

Coverture

A legal doctrine whereby, upon marriage, a woman's legal rights and obligations were subsumed by those of her husband, according to common law.

Mestizos

Individuals of mixed European and Indigenous American descent, a term primarily used in Latin America to describe a major cultural and demographic group.