Asked by Jason Jiang on May 05, 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$3.84$2.11$1.07 Part C $2.63$0.87$0.92$0\begin{array} { | l | l | l | l | l | } \hline \text { Product Blue } & \text { Resale Revenue } & \begin{array} { l } \text { Recycling } \\\text { Revenue }\end{array} & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 5.78 & \$ 3.84 & \$ 2.11 & \$ 1.07 \\\hline \text { Part C } & \$ 2.63 & \$ 0.87 & \$ 0.92 & \$ 0 \\\hline\end{array} Product Blue Part A Part B Part C Resale Revenue $4.25$5.78$2.63 Recycling Revenue $3.81$3.84$0.87 Processing Cost $1.26$2.11$0.92 Disposal Cost $2.48$1.07$0 Product Recycling Yellow Resale Revenue Revenue Processing Cost Disposal Cost Part A $9.84$6.54$2.16$0.88 Part B $7.14$5.45$3.48$0.97 Part C $0.85$0.69$0.16$0.31\begin{array} {| l | l | l | l | l | } \hline \text { Product } & & \text { Recycling } & & \\\text { Yellow } & \text { Resale Revenue } & \text { Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 9.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \\\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.16 & \$ 0.31 \\\hline\end{array} Product Yellow Part A Part B Part C Resale Revenue $9.84$7.14$0.85 Recycling Revenue $6.54$5.45$0.69 Processing Cost $2.16$3.48$0.16 Disposal Cost $0.88$0.97$0.31
Revenue Retrieval
The process of collecting and bringing back revenue that might have been lost, underreported, or incorrectly processed.
Resale Revenue
The income generated from selling purchased or previously owned goods to another party.
Recycling Revenue
Earnings derived from the gathering, processing, and sale of recyclable materials.
- Learn about the core principles of revenue retrieval analysis used in product comparison.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
Product Blue Resale Revenue Recycling Pevenue Processing Cost Disposal Cost Part A $4.25$3.81$1.26$2.48 Part B $5.78$3.84$2.11$1.07 Part C $2.63$0.87$0.92$0 Total \begin{array} { | l | l | l | l | l | } \hline \text { Product Blue } & \text { Resale Revenue } & \begin{array} { l } \text { Recycling } \\\text { Pevenue }\end{array} & \begin{array} { l } \text { Processing } \\\text { Cost }\end{array} & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 &\$2.48\\\hline \text { Part B } & \$ 5.78 & \$ 3.84 & \$ 2.11 & \$ 1.07 \\\hline \text { Part C } & \$ 2.63 & \$ 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$2.63 Recycling Pevenue $3.81$3.84$0.87 Processing Cost $1.26$2.11$0.92 Disposal Cost $2.48$1.07$0 Product Recycling Processing Yellow Resale Revenue Revenue Cost Disposal Cost Part A $9.84$6.54$2.16$0.88 Part B $7.14$5.45$3.48$0.97 Part C $0.85$0.69$0.16$0.31 Total \begin{array} { | l | l | l | l | l | } \hline \text { Product } & & \text { Recycling } & \text { Processing } & \\\text { Yellow } & \text { Resale Revenue } & \text { Revenue } & \text { Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 9.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \\\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.16 & \$ 0.31 \\\hline \text { Total } & & & & \\\hline\end{array} Product Yellow Part A Part B Part C Total Resale Revenue $9.84$7.14$0.85 Recycling Revenue $6.54$5.45$0.69 Processing Cost $2.16$3.48$0.16 Disposal Cost $0.88$0.97$0.31 Blue: $12.66 + $8.52 = $4.29 = $3.55 = $13.34
Yellow: $17.83 + $12.68 = $5.80 = $2.16 = $22.55
Yellow is the best at $22.55
Yellow: $17.83 + $12.68 = $5.80 = $2.16 = $22.55
Yellow is the best at $22.55
Learning Objectives
- Learn about the core principles of revenue retrieval analysis used in product comparison.