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 following table with the additional costs necessary to finish their processing. Based on this information, should any products be processed further?
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.

Question

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 following table with the additional costs necessary to finish their processing. Based on this information, should any products be processed further? 
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.

Quizplus · Accepted Answer

Product A: ($108 − $72) − $35 = $1
Product B: ($124 − $83) − $42 = ($1)
Product C: ($141 − $94) − $45 = $2

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