Bear Country Granola is considering selling premium granola.It already sells regular for $6.75/pound and would sell premium granola for $9.50/pound.The cost for organic grains for the premium granola would be $1.15/pound.A cost that would not be considered in this decision would be

Question

Quizplus · Accepted Answer

The cost of refining the regular granola is not relevant to the decision of whether or not to sell premium granola, as it is a sunk cost that has already been incurred. The decision is based on the additional revenue and the extra cost of using organic grains for the premium granola. C is also not relevant, as the question assumes that Bear Country Granola would produce the premium granola from scratch, rather than from further processing the regular granola.

Bear Country Granola Is Considering Selling Premium Granola