Business, 28.05.2020 22:03 tearaj

A manufacturing company currently produces 1,000 units of a product at a cost of $5,000. The units sell for $7,000. Alternatively, the company can process further to produce a refined product that will sell for $10,000. The additional processing will cost $4,000. The company should:

a. process further because net incremental income will be $6,000

b. sell as is because processing further will reduce income by $6,000 c. sell as is because processing further will reduce income by $1,000 d. process further because net incremental income will be $1,000

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A manufacturing company currently produces 1,000 units of a product at a cost of $5,000. The units s...