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A company processes a product called Harbalt that sells in batches of 10,000 pounds for $4.00 per pound. They can process the product further to
A company processes a product called Harbalt that sells in batches of 10,000 pounds for $4.00 per pound. They can process the product further to create another product called Larbunz that sells for $7.50 per pound. If they do process Larbunz, they lose 10% through evaporation. The cost to perform the additional process for creating Larbunz is $22,000.
Question: Should the company product Harbalt or Larbunz? Please show the work to explain your answer.
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