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Wright Corporation produces three products, A, B and C. Each product may be sold in an unfinished state or processed further and sold as a
Wright Corporation produces three products, A, B and C. Each product may be sold in an unfinished state or processed further and sold as a finished product. Data pertaining to the products follows: Product A Sales value as unfinished product: $12,000 Costs to finish: $9,000 Sales value as finished product: $18,000 Product B Sales value as unfinished product: $10,000 Costs to finish: $4,000 Sales value as finished product: $11,000 Product C Sales value as unfinished product: $15,000 Costs to finish: $6,000 Sales value as finished product: $26,000 Product B should be finished to increase profits by $11,000 should be sold as an unfinished product because further processing would reduce profits by $4,000. should be finished to increase profits by $1,000. should be sold as an unfinished product because processing further would reduce profits by $3,000
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