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Should George recommend that his division process Grade 2 into Grade 3 granite, or should he recommend selling it as Grade 2, without further processing?
Should George recommend that his division process Grade 2 into Grade 3 granite, or should he recommend selling it as Grade 2, without further processing? George should recommend that the company Report how much better or worse off the division would be by processing Grade 2 further. The company is by $ by doing so. As the manager of the granite-crushing division, George has just recently started evaluating product profitability. The joint process for his division generates Grade 1 and Grade 2 granite pieces. Both grades at this point can be sold as-is, or Grade 2 can be processed further into Grade 3 (a stabilizer is added while it's further processed into very fine pieces). The quantities, costs, and sales values for the different grades of product are as follows
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