Wizard Company produces several cleaning products.Each product can be sold at the split-off point or processed further.The company's accountant has compiled the information that follows:

-Which product provides the greatest amount of incremental revenue from further processing?
A)Wood Cleaner
B)Kitchen Cleaner
C)Both options provide the same incremental revenue.
D)Neither option provides incremental revenue.

Question

Wizard Company produces several cleaning products.Each product can be sold at the split-off point or processed further.The company's accountant has compiled the information that follows:

-Which product provides the greatest amount of incremental revenue from further processing?
A)Wood Cleaner 
B)Kitchen Cleaner 
C)Both options provide the same incremental revenue. 
D)Neither option provides incremental revenue.

Quizplus · Accepted Answer

Both options, Wood Cleaner and Kitchen Cleaner, are assumed to provide the same incremental revenue since no specific financial data differentiating the two products' incremental revenues from further processing is provided. Incremental revenue refers to the additional revenue generated from further processing or actions, and without specific data, we cannot determine a difference between the two options.

Wizard Company Produces Several Cleaning Products