Asked by Camri Baldwin on Jun 21, 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 $7.25$3.81$1.26$2.48 Part B $6.78$2.14$1.84$1.07 Part C $4.13$0.87$0.92$1.22\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 } & \$ 7.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 6.78 & \$ 2.14 & \$ 1.84 & \$ 1.07 \\\hline \text { Part C } & \$ 4.13 & \$ 0.87 & \$ 0.92 & \$ 1.22 \\\hline\end{array} Product Blue Part A Part B Part C Resale Revenue $7.25$6.78$4.13 Recycling Revenue $3.81$2.14$0.87 Processing Cost $1.26$1.84$0.92 Disposal Cost $2.48$1.07$1.22 Product Recycling Yellow Resale Revenue Revenue Processing Cost Disposal Cost Part A $5.84$6.54$2.67$0.88 Part B $7.14$5.45$4.48$0.97 Part C $0.96$0.69$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 & \$ 6.54 & \$ 2.67 & \$ 0.88 \\\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 4.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.96 & \$ 0.69 & \$ 0.41 & \$ 0.31 \\\hline\end{array} Product Yellow Part A Part B Part C Resale Revenue $5.84$7.14$0.96 Recycling Revenue $6.54$5.45$0.69 Processing Cost $2.67$4.48$0.41 Disposal Cost $0.88$0.97$0.31
Revenue Retrieval
The method for reclaiming income that was previously lost, underreported, or overlooked, through targeted financial strategies and actions.
Resale Revenue
Income generated from selling a product or service that has been purchased or acquired from another entity.
Recycling Revenue
Recycling revenue refers to the income generated from collecting, processing, and selling recycled materials, which can significantly contribute to an organization's or municipality's financial health and sustainability efforts.
- Understand the principles of revenue retrieval analysis for product comparison.
Verified Answer
YA
Youssef Al MakdissiJun 23, 2024
Final Answer :
Product Blue Resale Revenue Recycling revenue Processing Cost Disposal Cost Part A $7.25$3.81$1.26$2.48 Part B $6.78$2.14$1.84$1.07 Part C $4.13$0.87$0.92$1.22 Total \begin{array} { | l | l | l | l | l | } \hline \text { Product Blue } & \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 } & \$ 7.25 & \$ 3.81 & \$ 1.26&\$2.48 \\\hline \text { Part B } & \$ 6.78 & \$ 2.14 & \$ 1.84 & \$ 1.07 \\\hline \text { Part C } & \$ 4.13 & \$ 0.87 & \$ 0.92 & \$ 1.22 \\\hline \text { Total } & & & & \\\hline\end{array} Product Blue Part A Part B Part C Total Resale Revenue $7.25$6.78$4.13 Recycling revenue $3.81$2.14$0.87 Processing Cost $1.26$1.84$0.92 Disposal Cost $2.48$1.07$1.22 Product Recycling Processing Yellow Resale Revenue Revenue Cost Disposal Cost Part A $5.84$6.54$2.67$0.88 Part B $7.14$5.45$4.48$0.97 Part C $0.96$0.69$0.41$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 } & \$ 5.84 & \$ 6.54 & \$ 2.67 & \$ 0.88 \\\hline \text { Part B } & \$ 7.14 & \$ 5.45 & \$ 4.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.96 & \$ 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$7.14$0.96 Recycling Revenue $6.54$5.45$0.69 Processing Cost $2.67$4.48$0.41 Disposal Cost $0.88$0.97$0.31 Blue: $18.16 + $6.82 = $4.02 = $4.77 = $16.19
Yellow: $13.94 + $12.68 = $7.56 = $2.16 = $17.30
Yellow is the best at $17.30
Yellow: $13.94 + $12.68 = $7.56 = $2.16 = $17.30
Yellow is the best at $17.30
Learning Objectives
- Understand the principles of revenue retrieval analysis for product comparison.