A Company Has Already Incurred a $15,000 Cost in Partially

question 63

Multiple Choice

A company has already incurred a $15,000 cost in partially producing its three products. Their selling prices when partially and fully processed are shown in the table below with the additional costs necessary to finish their processing. Based on this information, should any products be processed further?
$\begin{array}{|c|c|c|c|}\hline \text { Product } & \begin{array}{c}\text { Unfinished } \\\text { Selling Price }\end{array} & \begin{array}{c}\text { Finished } \\\text { Selling Price }\end{array} & \begin{array}{c}\text { Further } \\\text { Processing } \\\text { Costs }\end{array} \\\hline \mathrm{A} & \$ 750 & \$ 875 & \$ 130 \\\hline \mathrm{B} & \$ 850 & \$ 1,000 & \$ 155 \\\hline \mathrm{C} & \$ 950 & \$ 1,200 & \$ 255 \\\hline\end{array}$

• A) All of these products should be processed further.
• B) None of these products should be processed further.
• C) Only product A should be processed further.
• D) Only product B should be processed further.
• E) Only product C should be processed further.

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Definitions:

Accessing Things

The act or process of obtaining or gaining entry to different types of resources, services, or information.

Owning Things

The act of possessing or having property, goods, or assets.

Liquid Approach

A flexible, adaptable strategy or methodology, often in business or creative endeavors, that allows for seamless changes in direction or concept.

Luxury Branding

The process of marketing products or services as luxury items, characterized by their quality, exclusivity, and accompanying prestige.