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Company Z processes 4 different products that can be sold without adding additional labor or cost, or can carry out another process and then sell
Company Z processes 4 different products that can be sold without adding additional labor or cost, or can carry out another process and then sell it. The data for both circumstances are as follows:
product | Sales price without adding additional labor | additional labor cost | Sales price after adding additional labor | |
x-1 | $2,000 | $800 | $2,800 | |
x-2 | $800 | $725 | $1,000 | |
x-3 | $1,800 | $650 | $2,900 | |
x-4 | $750 | $210 | $950 |
Determine which product(s) should not or should be added additional labor or cost and then sold? Explain your answer and present the calculations that justify your answer.
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