Marcus processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data:
$\begin{array}{lrrr}
&\text { Sales Value } & \text { Additional } & \text { Value after } \
&\text { with no further } & \text { Processing} & \text { further } \
\text { Product } & \text { Processing } & \text { Costs } & \text { processing } \
\text { Acta } & \$ 1,350 & \$ 900 & \$ 2,700 \
\text { Corda } & 450 & 225 & 630 \
\text { Limo } & 90 & 45 & 180\

\end{array}$ Which product(s)should not be processed further?

Question

Marcus processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data:
$\begin{array}{lrrr}
&\text { Sales Value } & \text {  Additional } & \text {  Value after }  \
&\text { with no further } & \text {   Processing} & \text {   further }  \
\text { Product } & \text { Processing } & \text { Costs } & \text { processing } \
\text { Acta } & \$ 1,350 & \$ 900 & \$ 2,700 \
\text { Corda } & 450 & 225 & 630 \
\text { Limo } & 90 & 45 & 180\

\end{array}$ Which product(s)should not be processed further?

Quizplus · Accepted Answer

The additional profit from further processing Corda is $630 - $450 = $180, which is less than the additional processing cost of $225. Therefore, Corda should not be processed further.

Marcus Processes Four Different Products That Can Either Be Sold