A Company Has Already Incurred a $55,000 Cost in Partially

question 94

Multiple Choice

A company has already incurred a $55,000 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?
$\begin{array}{|c|c|c|c|}\hline \text { Product } & \begin{array}{c}\text { Unfinished } \\\text { Selling Price }\end{array} & \begin{array}{c}\text { Finished } \\\text { Selling Price }\end{array} & \begin{array}{c}\text { Further } \\\text { Processing } \\\text { Costs }\end{array} \\\hline \mathrm{A} & \$ 72 & \$ 108 & \$ 35 \\\hline \mathrm{B} & \$ 83 & \$ 124 & \$ 42 \\\hline \mathrm{C} & \$ 94 & \$ 141 & \$ 45 \\\hline\end{array}$

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

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Definitions:

Generalized Anxiety Disorder

A chronic psychological disorder characterized by excessive, uncontrollable worry about everyday things, impacting daily functioning.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental disorders by the American Psychiatric Association.

Mood Disorders

A category of mental health disorders characterized by significant disturbances in an individual’s mood, such as depression or bipolar disorder.

Bipolar Disorders

Psychiatric conditions characterized by significant shifts in mood, energy, and activity levels, ranging from manic highs to depressive lows.