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?
$$\begin{array} { | l | l | l | l | l | }
\hline \text { Product Blue } & \text { Resale Revenue } & \begin{array} { l }
\text { Recycling } \
\text { Revenue }
\end{array} & \text { Processing Cost } & \text { Disposal Cost } \
\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \
\hline \text { Part B } & \$ 5.78 & \$ 3.84 & \$ 2.11 & \$ 1.07 \
\hline \text { Part C } & \$ 2.63 & \$ 0.87 & \$ 0.92 & \$ 0 \
\hline
\end{array}$$ $$\begin{array} {| l | l | l | l | l | }
\hline \text { Product } & & \text { Recycling } & & \
\text { Yellow } & \text { Resale Revenue } & \text { Revenue } & \text { Processing Cost } & \text { Disposal Cost } \
\hline \text { Part A } & \$ 9.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \
\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \
\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.16 & \$ 0.31 \
\hline
\end{array}$$

Question

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?
 $$\begin{array} { | l | l | l | l | l | } 
\hline \text { Product Blue } & \text { Resale Revenue } & \begin{array} { l } 
\text { Recycling } \
\text { Revenue }
\end{array} & \text { Processing Cost } & \text { Disposal Cost } \
\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \
\hline \text { Part B } & \$ 5.78 & \$ 3.84 & \$ 2.11 & \$ 1.07 \
\hline \text { Part C } & \$ 2.63 & \$ 0.87 & \$ 0.92 & \$ 0 \
\hline
\end{array}$$ $$\begin{array} {| l | l | l | l | l | } 
\hline \text { Product } & & \text { Recycling } & & \
\text { Yellow } & \text { Resale Revenue } & \text { Revenue } & \text { Processing Cost } & \text { Disposal Cost } \
\hline \text { Part A } & \$ 9.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \
\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \
\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.16 & \$ 0.31 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer is

\begin{array} { | l | l | l | l | l | } \hline ext { Product Blue } & ext { Resale Revenue } & \begin{array} { l } ext { Recycling } \ ext { Pevenue }\end{array} & \begin{array} { l } ext { Processing } \ ext { Cost }\end{array} & ext { Disposal Cost } \\hline ext { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 &\$2.48\\hline ext { Part B } & \$ 5.78 & \$ 3.84 & \$ 2.11 & \$ 1.07 \\hline ext { Part C } & \$ 2.63 & \$ 0.87 & \$ 0.92 & \$ 0 \\hline ext { Total } & & & & \\hline\end{array}

\begin{array} { | l | l | l | l | l | } \hline ext { Product } & & ext { Recycling } & ext { Processing } & \ ext { Yellow } & ext { Resale Revenue } & ext { Revenue } & ext { Cost } & ext { Disposal Cost } \\hline ext { Part A } & \$ 9.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \\hline ext { Part B } & \$ 7.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\hline ext { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.16 & \$ 0.31 \\hline ext { Total } & & & & \\hline\end{array}

Blue: $12.66 + $8.52 = $4.29 = $3.55 = $13.34
Yellow: $17.83 + $12.68 = $5.80 = $2.16 = $22.55
Yellow is the best at $22.55

Two Different Products Are Being Considered for Production