Question
Deep South Dairy gathered the following data about the two products that it produces: Current Sales Estimated Added Sales Value if Product Value Processing Costs
Deep South Dairy gathered the following data about the two products that it produces:
Current Sales Estimated Added Sales Value if
Product Value Processing Costs Processed Further
Milk $9,000 $1,000 $13,000
Yogurt 13,000 2,000 18,000
Which of the products should be processed further?
Yogurt, because profits increase by $1,000, which exceeds the profits increased by Milk | ||
Both products, because profits for Milk will be $3,000, and profit for Yogurt will be $3,000 | ||
Both products, because revenue will increase by $9,000 for Milk, and by $6,000 for Yogurt | ||
Both products, because profits for Milk will be $1,000, and profit for Yogurt will be $1,000 | ||
Milk, because profits increase by $1,000, whereas Yogurt results in decrease of profit |
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