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:

Americans

Refers to the citizens or natives of the United States of America, characterized by a diverse cultural heritage and history.

Goal

An objective or desired outcome that an individual or group aims to achieve through targeted actions.

Industrialization

The development of industries in a country or region on a wide scale, marked by the transition from agrarian societies to more complex industrial societies.

Labor Force

The total number of people who are eligible and able to work, including both the employed and those seeking employment.