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A company has a process that results in 31000 pounds of Product A that can be sold for $8 per pound. An alternative would be
A company has a process that results in 31000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $207700 and then sell it for $14 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? Process further, the company will be better off by $21700. Sell now, the company will be better off by $207700. Process further, the company will be better off by $186000. Sell now, the company will be better off by $21700
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