A company has a process that results in 1,000 kilograms of Product X that can be sold for $10 per kilogram. An alternative would be to process Product X further at a cost of $2,000 and then sell it for $13 per kilogram. Should management sell Product X now or should Product X be processed further and then sold?

Process further, the company will be better off by $3,000.

Process further, the company will be better off by $1,000.

Sell now: the company will be better off by $1,000.

Sell now; the company will be better off by $10,000.