Carolina Potato Inc.currently sells cut sweet potatoes for $.85 per can.The cost of producing the sweet potatoes is $.18 per can.Carolina Potato is considering starting a line of mashed sweet potatoes.The additional processing costs would be $.06 per can and each can would sell for $.95.Which of the following pieces of information is not relevant to the decision to sell 'as is' or process further?

Question

Quizplus · Accepted Answer

The production cost of $.18 per can is a sunk cost and remains the same whether the sweet potatoes are sold 'as is' or processed further. Therefore, it is not relevant to the decision between the two options.