If the marginal (extra) revenue associated with a sell as is or process further decision exceeds the
marginal (extra) cost associated with the decision, the company should make the decision to process
further.

Question

Quizplus · Accepted Answer

If the marginal revenue from processing further exceeds the marginal cost of that additional processing, the company will increase its overall profit by choosing to process the product further.

If the Marginal (Extra) Revenue Associated with a Sell as Is