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Marigold Company gathered the following data about the three products that it produces: Product   Present Sales Value Estimated Additional Processing Costs Estimated Sales if Processed Further A   $10400   $7200   $18600   B   12400   4200   15600   C   9400   2200   13600

Marigold Company gathered the following data about the three products that it produces: Product   Present Sales Value Estimated Additional Processing Costs Estimated Sales if Processed Further A   $10400   $7200   $18600   B   12400   4200   15600   C   9400   2200   13600

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 5DQ
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Marigold Company gathered the following data about the three products that it produces:

Product   Present
Sales Value		 Estimated Additional
Processing Costs		 Estimated Sales
if Processed Further
A   $10400   $7200   $18600  
B   12400   4200   15600  
C   9400   2200   13600  

Which of the products should not be processed further?
a. Product C
b. Products A and C
c. Product B
d. Product A
 
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