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A company has a process that results in 1140 kilograms of Product X that can be sold for $10 per kilogram. An alternative would be
A company has a process that results in 1140 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 $2280 and then sell it for $16 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 $6840.
Process further; the company will be better off by $4560.
Sell now; the company will be better off by $11400.
Sell now; the company will be better off by $4560.
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