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.

Question

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.

Quizplus · Accepted Answer

The Deluxe product should not be processed further because the additional processing cost ($225) is greater than the increase in sales value ($180), resulting in a net loss.

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

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