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Two Different Products Are Being Considered for Production

Question 9

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Two different products are being considered for production. The cost structures are listed below on a per unit basis. Which product should be produced, using revenue retrieval analysis?
 Product  Blue  Resale Revenue  Recycling Revenue  Processing Cost  Disposal Cost  Part A $4.25$3.81$1.26$2.48 Part B $5.78$2.14$1.04$1.07 Part C $2.13$0.87$0.92$0\begin{array} {| l | l | l | l | l |} \hline\text { Product } & & & & \\\text { Blue } & \text { Resale Revenue } & \text { Recycling Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 5.78 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.13 & \$ 0.87 & \$ 0.92 & \$ 0\\\hline\end{array}  Product  Yellow  Resale Revenue  Recycling Revenue  Processing Cost  Disposal Cost  Part A $5.84$6.54$2.16$0.88 Part B $6.14$5.45$3.48$0.97 Part C $0.85$0.69$0.41$0.31\begin{array} {| l | l | l | l | l | } \hline \text { Product } & & & & \\\text { Yellow } & \text { Resale Revenue } & \text { Recycling Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 5.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \\\hline \text { Part B } & \$ 6.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.41 & \$ 0.31 \\\hline\end{array}

Correct Answer:

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blured image blured image Blue: $12.16 + $6.82 = $3.22...

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