Asked by Jasmine Montero on Jun 07, 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 $4.89$3.81$1.55$2.48 Part B $5.62$2.14$1.04$1.07 Part C $2.98$0.87$0.99$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 } & \$ 4.89 & \$ 3.81 & \$ 1.55 & \$ 2.48 \\\hline \text { Part B } & \$ 5.62 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.98 & \$ 0.87 & \$ 0.99 & \$ 0 \\\hline\end{array} Product Blue Part A Part B Part C Resale Revenue $4.89$5.62$2.98 Recycling Revenue $3.81$2.14$0.87 Processing Cost $1.55$1.04$0.99 Disposal Cost $2.48$1.07$0 Product Recycling Yellow Resale Revenue Revenue Processing Cost Disposal Cost Part A $5.84$6.97$2.16$0.42 Part B $6.14$5.01$3.48$0.59 Part C $0.85$0.66$0.41$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 } & \$ 5.84 & \$ 6.97 & \$ 2.16 & \$ 0.42 \\\hline \text { Part B } & \$ 6.14 & \$ 5.01 & \$ 3.48 & \$ 0.59 \\\hline \text { Part C } & \$ 0.85 & \$ 0.66 & \$ 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 $6.97$5.01$0.66 Processing Cost $2.16$3.48$0.41 Disposal Cost $0.42$0.59$0.31
Revenue Retrieval
The process of collecting revenues or income, typically referring to efforts to regain lost revenues or enhance income streams.
Resale Revenue
Income generated from selling previously owned or used goods.
Recycling Revenue
The income generated from selling recycled materials, often contributing to cost savings and environmental sustainability.
- Acquire knowledge on the basic principles involved in revenue retrieval analysis to compare different products.
Verified Answer
RS
Rabel ShadmaniJun 09, 2024
Final Answer :
Product blue Resale Revenue Recycling Revenue Processing Cost Disposal Cost Part A $4.89$3.81$1.55$2.48 Part B $5.62$2.14$1.04$1.07 Part C $2.98$0.87$0.99$0 Total \begin{array} { | l | l | l | l | l | } \hline \begin{array} { l } \text { Product } \\\text { blue}\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 } & \$ 4.89 & \$ 3.81 & \$ 1.55 & \$ 2.48 \\\hline \text { Part B } & \$ 5.62 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.98 & \$ 0.87 & \$ 0.99 & \$ 0 \\\hline \text { Total } & & & &\\\hline\end{array} Product blue Part A Part B Part C Total Resale Revenue$4.89$5.62$2.98 Recycling Revenue $3.81$2.14$0.87 Processing Cost $1.55$1.04$0.99 Disposal Cost $2.48$1.07$0 Product Yellow Resale Revenue Recycling Revenue Processing Cost Disposal Cost Part A $5.84$6.97$2.16$0.42 Part B $6.14$5.01$3.48$0.59 Part C $0.85$0.66$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 & \$ 6.97 & \$ 2.16 &\$0.42\\\hline \text { Part B } & \$ 6.14 & \$ 5.01 & \$ 3.48 & \$ 0.59 \\\hline \text { Part C } & \$ 0.85 & \$ 0.66 & \$ 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 $6.97$5.01$0.66 Processing Cost $2.16$3.48$0.41 Disposal Cost $0.42$0.59$0.31 Blue: $13.49 + $6.82 = $3.58 = $3.55 = $13.18
Yellow: $12.83 + $12.64 = $6.05 = $1.32 = $18.10
Yellow is the best at $18.10
Yellow: $12.83 + $12.64 = $6.05 = $1.32 = $18.10
Yellow is the best at $18.10
Learning Objectives
- Acquire knowledge on the basic principles involved in revenue retrieval analysis to compare different products.