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Cayman Industries has inventory of Item A with a present sales value of $24,000. If Item A is processed further at a cost of $16,000
Cayman Industries has inventory of Item A with a present sales value of $24,000. If Item A is processed further at a cost of $16,000 it can be sold for $42,000. Cayman also has inventory of Item B which has a present sales value of $28,000. If Item B is processed further at a cost of $10,000 it can be sold for $36,000. If Cayman wants to maximize net income, what decision should be made?
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