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Zycon has produced 9,000 units of raw milk at a $18,000 cost. These units can be sold as is to another manufacturer for $10,800. Instead,
Zycon has produced 9,000 units of raw milk at a $18,000 cost. These units can be sold as is to another manufacturer for $10,800. Instead, Zycon can process the units further and produce yogurt. Processing further will cost an additional $14,400 and will yield revenues of $27,000. Identify whether each of the following is relevant or not relevant to the sell or process further decision.
\begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ Item } \\ \hline a. $18,000 cost already incurred to produce milk & \\ \hline b. $10,800 selling price for milk as is & \\ \hline c. $14,400 further processing costs & \\ \hline d. $27,000 revenue from further processing & \\ \hline \end{tabular}Step by Step Solution
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