Deep South Dairy gathered the following data about the two products that it produces: $\begin{array}{llrr}& \begin{array}{c}
\text { Current Sales } \

\end{array} & \text { Estim ated Added } & \text { Sales Value if } \
\text { Product } &\text { Value }& \text { Processing Costs } & \text { Processed Further }\
\text { Milk } & \$ 8,000 & \$ 2,000 & \$ 11,000 \
\text { Yogurt } & 12,000 & 7,000 & 18,000
\end{array}$ Which of the products should be processed further?
A)Milk, because profits increase by $1,000, whereas Yogurt results in decrease of profit
B)Yogurt, because profits increase by $1,000, which exceeds the profits increased by Milk
C)Both products, because revenue will increase by $9,000 for Milk, and by $6,000 for Yogurt
D)Both products, because profits for Milk will be $1,000, and profit for Yogurt will be $1,000

Question

Deep South Dairy gathered the following data about the two products that it produces: $\begin{array}{llrr}& \begin{array}{c}
\text { Current Sales } \

\end{array} & \text { Estim ated Added } & \text { Sales Value if } \
\text { Product } &\text { Value }& \text { Processing Costs } & \text { Processed Further }\
\text { Milk } & \$ 8,000 & \$ 2,000 & \$ 11,000 \
\text { Yogurt } & 12,000 & 7,000 & 18,000
\end{array}$ Which of the products should be processed further?
A)Milk, because profits increase by $1,000, whereas Yogurt results in decrease of profit
B)Yogurt, because profits increase by $1,000, which exceeds the profits increased by Milk
C)Both products, because revenue will increase by $9,000 for Milk, and by $6,000 for Yogurt
D)Both products, because profits for Milk will be $1,000, and profit for Yogurt will be $1,000

Quizplus · Accepted Answer

Processing Milk further increases profits by $1,000 ($11,000 - $8,000 - $2,000), while processing Yogurt further results in no profit change ($18,000 - $12,000 - $7,000 = -$1,000).

Deep South Dairy Gathered the Following Data About the Two