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Listmann Corp. processes four different products that can either be sold as is or processed further. Listed below are sales and additional cost data: Product Sales Value with no further Processing Additional Processing Costs Sales Value after further processing Premier $ 1,350 $ 900 $ 2,700 Deluxe 450 225 630 Super 900 450 1,800 Basic 90 45 180 Which product(s) should not be processed further?

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Answer:

Which product(s) should not be processed further?

Deluxe products should not be processed further because the cost of further processing is higher than the additional benefits.

Explanation:

Product    Sales value with            Additional processing   Sales value after

                no further processing   costs                               further processing

Premier         $1,350                             $900                             $2,700

Deluxe            $450                             $225                                $630

Super              $900                             $450                              $1,800

Basic                 $90                               $45                                  $180

                      further processing         added value            difference

                      costs

Premier          $900                               $1,350                      $450

Deluxe            $225                                 $180                     ($180)            

Super              $450                                $900                      $450

Basic                 $45                                   $90                        $45

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