A company has already incurred $8,400 of costs in producing 6,600 units of Product XY. Product XY can be sold as is for $26 per unit. Instead, the company could incur further processing costs of $10 per unit and sell the resulting product for $31 per unit. Should the company sell Product XY as is or process it further?

Answer

The company should sell XY as it is because processing it further would reduce its income by $(33,000)

Explanation

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Product A                                                                $

Additional revenue ( 31 -26)×  6,600               33,000

Further processing cost (10×  6600)             ( 66,000)

Loss from further processing (100)               (33,000)

answerpublic goods;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.