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A company has a process that results in 31000 pounds of Product A that can be sold for $12 per pound. An alternative would be
A company has a process that results in 31000 pounds of Product A that can be sold for $12 per pound. An alternative would be to process Product A further at a cost of $230000 and then sell it for $16 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action? Sell now because the company will be better off by $230000. Process further because the company will be better off by $124000. Process further because the company will be better off by $106000. Sell now because the company will be better off by $106000
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