What is the effect of the action

Reference no: EM13147390

A company has a process that results in 15,000 pounds of Product A that can be sold for $8 per pound. An alternative would be to process Product A further at a cost of $100,000 and then sell it for $14 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?

a) Process further, the company will be better off by $10,000.

b) Sell now, the company will be better off by $10,000.

c) Process further, the company will be better off by $90,000.

d) Sell now, the company will be better off by $100,000.

Reference no: EM13147390

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