Asked by Keyla Ortiz on May 12, 2024
Verified
Two different products are being considered for production. The cost structures are listed below on a per unit basis. Which product should be produced, using revenue retrieval analysis?
Product Blue Resale Revenue Recycling Revenue Processing Cost Disposal Cost Part A $4.25$3.81$1.26$2.48 Part B $5.78$2.14$1.04$1.07 Part C $2.13$0.87$0.92$0\begin{array} {| l | l | l | l | l |} \hline\text { Product } & & & & \\\text { Blue } & \text { Resale Revenue } & \text { Recycling Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 5.78 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.13 & \$ 0.87 & \$ 0.92 & \$ 0\\\hline\end{array} Product Blue Part A Part B Part C Resale Revenue $4.25$5.78$2.13 Recycling Revenue $3.81$2.14$0.87 Processing Cost $1.26$1.04$0.92 Disposal Cost $2.48$1.07$0 Product Yellow Resale Revenue Recycling Revenue Processing Cost Disposal Cost Part A $5.84$6.54$2.16$0.88 Part B $6.14$5.45$3.48$0.97 Part C $0.85$0.69$0.41$0.31\begin{array} {| l | l | l | l | l | } \hline \text { Product } & & & & \\\text { Yellow } & \text { Resale Revenue } & \text { Recycling Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 5.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \\\hline \text { Part B } & \$ 6.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.41 & \$ 0.31 \\\hline\end{array} Product Yellow Part A Part B Part C Resale Revenue $5.84$6.14$0.85 Recycling Revenue $6.54$5.45$0.69 Processing Cost $2.16$3.48$0.41 Disposal Cost $0.88$0.97$0.31
Revenue Retrieval
The process of getting back revenue that has been lost or unaccounted for through various recovery efforts or strategies.
Resale Revenue
Income generated from selling goods or services that were previously purchased.
Recycling Revenue
Income generated from selling recyclable materials that have been collected, processed, and remanufactured into new products.
- Perform cost-benefit analysis for complex decision-making in production.
Verified Answer
CS
Cierra SampsonMay 18, 2024
Final Answer :
Product Blue Resale Revenueling Processing Revenue Revenue Cost Disposal Cost Part A $4.25$3.81$1.26$2.48 Part B $5.78$2.14$1.04$1.07 Part C $2.13$0.87$0.92$0 Total \begin{array} { | l | l | l | l | l | } \hline { \text { Product Blue } } & \text { Resale } & \text { Revenueling } & \text { Processing } & \\ & \text { Revenue } & \text { Revenue } & \text { Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 5.78 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.13 & \$ 0.87 & \$ 0.92 & \$ 0 \\\hline \text { Total } & & & & \\\hline\end{array} Product Blue Part A Part B Part C Total Resale Revenue $4.25$5.78$2.13 Revenueling Revenue $3.81$2.14$0.87 Processing Cost $1.26$1.04$0.92 Disposal Cost $2.48$1.07$0 Product Yellow Resale Revenue Recycling Revenue Processing Cost Disposal Cost Part A $5.84$6.54$2.16$0.88 Part B $6.14$5.45$3.48$0.97 Part C $0.85$0.69$0.41$0.31 Total \begin{array} { | l | l | l | l | l | } \hline \begin{array} { l } \text { Product } \\\text { Yellow }\end{array} & \text { Resale Revenue} & \begin{array} { l } \text { Recycling } \\\text { Revenue }\end{array} & \begin{array} { l } \text { Processing } \\\text { Cost }\end{array} & \text { Disposal Cost } \\\hline \text { Part A } & \$ 5.84 & \$ 6.54 & \$ 2.16 &\$0.88\\\hline \text { Part B } & \$ 6.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.41 & \$ 0.31 \\\hline \text { Total } & & & & \\\hline\end{array} Product Yellow Part A Part B Part C Total Resale Revenue$5.84$6.14$0.85 Recycling Revenue $6.54$5.45$0.69 Processing Cost $2.16$3.48$0.41 Disposal Cost $0.88$0.97$0.31 Blue: $12.16 + $6.82 = $3.22 = $3.55 = $12.24
Yellow: $12.83 + $12.68 = $6.05 = $2.16 = $17.30
Yellow is the best at $17.30
Yellow: $12.83 + $12.68 = $6.05 = $2.16 = $17.30
Yellow is the best at $17.30
Learning Objectives
- Perform cost-benefit analysis for complex decision-making in production.