Question
In the manufacturing process of Drigo company, an output called substance pooz is disposed of as a waste.Recently, the Research Department has discovered a process
In the manufacturing process of Drigo company, an output called substance "pooz" is disposed of as a waste.Recently, the Research Department has discovered a process to convert this waste to detergent.
The following data are available:
1.Cost of disposal is 20 per liter.
2.Additional processing cost will be 6 per liter.
3.Selling price of the new detergent is 14 per liter.
4.Joint cost to manufacture all products is 1.5 billion, of which 250,000 can be allocated to "pooz".
Which of the amounts are relevant in the decision to dispose or sell "pooz" as detergent?
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