Sell a product or processing further: The decision regarding whether a company must continue to process a middle-end product or sell it in that form itself is taken considering the incremental revenue and costs that are related to its processing. If any decision thereof can add more value to the company‘s business than usual, then the decision is accepted. To prepare: An analysis to show whether the 28,000 units of Product A must be processed further or not.

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Chapter 23, Problem 8E

To determine

Sell a product or processing further:

The decision regarding whether a company must continue to process a middle-end product or sell it in that form itself is taken considering the incremental revenue and costs that are related to its processing. If any decision thereof can add more value to the company‘s business than usual, then the decision is accepted.

To prepare: An analysis to show whether the 28,000 units of Product A must be processed further or not.

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