Answered
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 $5.25$3.68$1.01$2.48 Part B $8.78$4.37$1.04$1.07 Part C $2.13$0.92$0.14$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 } & \$ 5.25 & \$ 3.68 & \$ 1.01 & \$ 2.48 \\\hline \text { Part B } & \$ 8.78 & \$ 4.37 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.13 & \$ 0.92 & \$ 0.14 & \$ 0 \\\hline\end{array} Product Blue Part A Part B Part C Resale Revenue $5.25$8.78$2.13 Recycling Revenue $3.68$4.37$0.92 Processing Cost $1.01$1.04$0.14 Disposal Cost $2.48$1.07$0 Product Recycling Yellow Resale Revenue Revenue Processing Cost Disposal Cost Part A $5.21$3.54$2.18$0.88 Part B $5.14$5.66$2.48$1.97 Part C $0.97$0.71$0.35$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 } & \$ 5.21 & \$ 3.54 & \$ 2.18 & \$ 0.88 \\\hline \text { Part B } & \$ 5.14 & \$ 5.66 & \$ 2.48 & \$ 1.97 \\\hline \text { Part C } & \$ 0.97 & \$ 0.71 & \$ 0.35 & \$ 0.31 \\\hline\end{array} Product Yellow Part A Part B Part C Resale Revenue $5.21$5.14$0.97 Recycling Revenue $3.54$5.66$0.71 Processing Cost $2.18$2.48$0.35 Disposal Cost $0.88$1.97$0.31
On Sep 22, 2024