A company plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. With the process in-house production; the annual fixed cost is $190,000 and a variable cost of $4 per unit. Determine the range of annual quantity for which each of the alternatives would be best?
Answers
The cost of a unit is $7 while it can be purchased in house at a variable rate that depends on the quantity.
What is production?Production is the creation of goods, which are sold to earn profits, it is therefore required to keep the cost low so that the highest profit is earned.
The new small appliance can be purchased for $7 from outside while for in-house it will cost as,
To match the price from the vendor we need to produce 63,333 units per year, ($190,000/63,333) + $4 = $7
Calculation for 63,333 units,
$7-$4 (per unit variable cost) = $3 this cost needs to be fixed cost.
$190,000/$3 = 63,333 units.
Therefore the company needs to produce more than 63,333 units to benefit from in-house production.
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Related Questions
in g Boren Company reported the following information for the current year: Sales (625 units) $37,800, direct materials and direct labor $14,600, other variable costs $13,200, and fixed costs $6,000. What is the company's break-even point in units?
Answers
Answer:
375
Explanation:
Breakeven point is the number of units produced and sold at which net income is equal to zero. It is the point at which revenue is equal to cost.
Break even point = F / (P - V)
F = fixed cost = $6,000
P = price = $37,800 / 625 = $60.48
V = variable cost per unit = ($14,600 + $13,200) / 625 = $44.48
$6,000 / $60.48 - $44.48 = 375
I hope my answer helps you
Answer:
Break even in units = 375 units
Explanation:
Break even point in units is the point where the total revenue earned equals total cost. It is a point of no profit no loss. Break even point in units is calculated as follows,
Break even in units = fixed cost / contribution margin per unit
Contribution margin per unit = Selling price per unit - Variable cost per unit
First we need to calculate the Contribution margin per unit.
Contribution margin per unit = [37800 - (14600 + 13200)] / 625
Contribution margin per unit = 16
Break even in units = 6000 / 16
Break even in units = 375 units
Advise business on the role of intermediaries in the distribution process.
Answers
Intermediaries, in business and marketing, are those that act as a middleman between the producer and the consumer. The role of intermediaries in the distribution process of goods and services is to ensure that products and services are moved from the producer to the consumers.
There are several types of intermediaries in the distribution process, including wholesalers, retailers, agents, and brokers. They play a crucial role in the distribution process in the following ways:
Assist in Sorting and Selection: Intermediaries help producers to sort and select their products, which saves time and money for producers.Assist in Breaking Bulk: Intermediaries buy goods in large quantities from producers and then break them into smaller quantities. This makes it possible for producers to sell their products in smaller quantities, making it possible for consumers to afford them.Helps in Transporting Goods: Intermediaries help in transporting products from producers to consumers by offering transportation services at lower costs. They also assist in the warehousing of goods, which helps in the storage and protection of goods.Assist in Financing: Intermediaries play an important role in financing. They buy goods from producers, hold them, and then sell them to consumers. This helps to reduce the risk of loss for producers by providing cash up front for goods sold. They also offer credit facilities to consumers, which makes it possible for them to buy goods without having to pay cash upfront.Help in Providing Information: Intermediaries help to provide information about products and services to consumers, making it easier for them to make informed decisions. They also help to provide feedback to producers about the quality of their products and services.For more such questions on marketing
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True or False: A partner cannot legally bind the other partners to a business agreement.
Answers
Answer: False
Explanation: In many cases, a partner will be able to bind the partnership without the other owners' consent. However, steps can be taken to prevent any one partner from entering into an agreement without the consent of the others.
What reason did the London court provide for its decision?
Historical research is fair game for fiction authors to use in their work.
Historical research can only be used with the original author’s permission.
Historical research is fair to use in nonfiction, but not in works of fiction.
Historical research is copyright protected and can never be shared or borrowed.
Answers
Answer:
A: Historical research is fair game for fiction authors to use in their work.
Explanation:
2021 edge
Answer:
A
Explanation:
Historical research is fair game for fiction authors to use in their work.
Define offshore outsourcing.
How does it help companies in the US?
What impact can offshore outsourcing have on US workers?
Answers
In an overview, an offshore sourcing helps to lowers costs to U.S. firms and allows them to spend money on new U.S. workers. Generally, it also increases the efficiency of the economy and results in higher wages and increased exports.
What is an offshore outsourcing?Basically, an outsourcing refers to any arrangement in which a company provides services for another company that could also usually have been provided in-house. Going forward, the offshore outsourcing means the business process off outsourcing that involves the exporting of workfoce from the United States and other developed countries where there is both political stability and lower labor costs or tax savings.
In conclusion, the offshore outsourcing allows the U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the country.
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Propose your top three potential social causes for your organization and why your selected social cause or issue is a good match with your chosen corporation for creating a corporate social responsibility (CSR) campaign.
Answers
By selecting a social cause that aligns with their values and corporate goals, companies can create a CSR campaign that resonates with stakeholders and helps to build a positive reputation for their brand.
There are various social causes that companies may choose to support, depending on their corporate social responsibility goals. Here are the top three social causes that I would recommend for an organization, along with reasons why they are good matches for creating a CSR campaign:1. Environmental conservation: Protecting the environment and promoting sustainable practices is a social cause that has gained widespread attention in recent years.
As climate change continues to be a pressing issue, businesses that take a proactive approach to reducing their carbon footprint can establish themselves as responsible and sustainable entities. This is a good match for companies that have a large environmental impact, such as those in the manufacturing or transportation sectors. A CSR campaign focused on environmental conservation can include initiatives such as reducing waste, using renewable energy sources, and promoting eco-friendly practices among employees and customers.
2. Education: Investing in education is one of the most effective ways to support social development and empower individuals and communities. For companies that want to create a CSR campaign that has a tangible impact on people's lives, education is a great choice. This is especially relevant for companies that have a strong local presence and want to support the communities in which they operate. A CSR campaign focused on education can include initiatives such as donating educational resources to schools, providing scholarships to students, or organizing workshops and training programs for employees and community members.
3. Health and wellness: Promoting health and wellness is a social cause that has become increasingly relevant in light of the COVID-19 pandemic. Companies that prioritize the well-being of their employees and customers can create a positive image for themselves and build strong relationships with stakeholders. This is a good match for companies in the healthcare or hospitality sectors, as well as those that offer wellness-related products or services.
A CSR campaign focused on health and wellness can include initiatives such as promoting healthy lifestyles, providing access to healthcare services, or supporting mental health awareness and treatment programs.Overall, each of these social causes has the potential to create a meaningful and lasting impact, both for the company and the communities it serves.
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Consider total cost and total revenue, given in the following table:
In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.)
Total Cost Marginal Cost
(Dollars)
Quantity (Dollars)
0
1
2
3
4
5
6
7
5
6
8
11
15
20
26
35
05
06
07
Total Revenue Marginal Revenue
(Dollars)
(Dollars)
0
6
12
18
24
30
36
42
AAAAAAA
Profit
(Dollars)
In order to maximize profit, how many units should the firm produce? Check all that apply.
04
Answers
The solution to the given question when we consider total cost and total revenue, given in the following table:
The Financial TableQuantity | Total Cost | Marginal Cost | Total Revenue | Marginal Revenue | Profit
------- | -------- | -------- | -------- | -------- | --------
0 | 5 | 5 | 0 | 0 | -5
1 | 11 | 6 | 6 | 6 | 1
2 | 17 | 6 | 12 | 6 | 5
3 | 24 | 7 | 18 | 6 | 4
4 | 31 | 8 | 24 | 6 | -7
5 | 39 | 8 | 30 | 6 | -9
6 | 47 | 8 | 36 | 6 | -11
7 | 55 | 8 | 42 | 6 | -13
As you can see, the firm's profit is maximized at quantity 3. This is because the marginal revenue is equal to zero at this point, which means that the firm is not making any additional profit by producing more units. In fact, if the firm produces more units, it will actually start to lose money.
Therefore, the answer to the question is 3.
In summary:
The firm's profit is maximized at quantity 3.This is because the marginal revenue is equal to zero at this point.If the firm produces more units, it will start to lose money.Therefore, the answer to the question is 3.Read more about marginal revenue here:
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Project 1 requires an original investment of $55,000. The project will yield cash flows of $15,000 per year for seven years. Project 2 has a calculated net present value of $5,000 over a four-year life. Project 1 could be sold at the end of four years for a price of $38,000.
Answers
if we are solely considering financial profitability, we should choose Project 1 over Project 2.
How to compare?
To compare the profitability of these two projects, we need to calculate the net present value (NPV) of each project.
For Project 1:
Initial investment = $55,000
Annual cash flow = $15,000
Project life = 7 years
Using a discount rate of 10%, we can calculate the NPV of Project 1 as follows:
NPV = -$55,000 + ($15,000 / 1.10) + ($15,000 / 1.10²2) + ... + ($15,000 / 1.10²7)
NPV = -$55,000 + $11,051.29 + $10,046.63 + ... + $4,583.72
NPV = $4,291.64
For Project 2:
Net present value = $5,000
Project life = 4 years
We don't have information about the initial investment or annual cash flows for Project 2, so we cannot calculate its NPV directly.
However, we know that Project 1 could be sold at the end of four years for $38,000. If we assume that this is the market value of the project at that time, then the NPV of Project 1 after four years would be:
NPV = -$55,000 + ($15,000 / 1.10) + ($15,000 / 1.10²2) + ... + ($15,000 / 1.10^4) + $38,000 / 1.10²4
NPV = -$55,000 + $11,051.29 + $10,046.63 + ... + $6,889.36 + $27,874.04
NPV = $896.32
Based on these calculations, Project 1 has a higher NPV than Project 2. Therefore, if we are solely considering financial profitability, we should choose Project 1 over Project 2.
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demarco and tanya have received information about the separate mortgage offers. In two or three paragraphs describe your recommendation for the best financial choice in their situation.
Answers
There are a few fundamental elements to be kept in mind when assessing potential mortgage offers, which include:
How to make the recommendationInterest rate: This is one of the key components to ponder upon when evaluating different mortgages. A lower interest rate entails smaller monthly payments as well as a decrease in sum spent on interest overall during the duration of the loan.
Loan term: The length of the loan is another aspect that should not go unnoticed. When opting for a briefer loan, more money will be spent towards monthly payments but correspondingly less towards interest. However, if you desire a longer period, then the opposite is true with fewer monthly payments but expenditure on interest increases.
Closing costs: It is essential to take closing fees into consideration since they can end up reaching staggering heights. Closing costs refer to every single amount related to taking out a mortgage and ought to be given due thought before deciding on an offer.
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During civil lawsuit, proceedings regarding alcohol, service courts will try to determine if the
Answers
During civil lawsuit proceedings regarding alcohol service, courts will try to determine if the designated driver was present and remained sober.
How do courts determine the presence and sobriety?During civil lawsuit proceedings involving alcohol service, courts aim to establish whether a designated driver was present and this determination is crucial in cases where establishments or individuals are being held accountable for over-serving alcohol to a patron who later caused harm or injury due to impaired driving.
The court may consider various forms of evidence such as witness testimonies, surveillance footage, receipts indicating non-alcoholic purchases or the designated driver's own account of their sobriety. It court may evaluate the credibility and reliability of the designated driver's actions and statements throughout the relevant time period.
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If you want a higher interest rate and need to make only a few transactions per month, which type of account should you choose?
A. Checking account
B. Certificate of Deposit
C. Savings account
D. Money market account
Answers
Savings account is a account in which if we want a higher interest rate and need to make only a few transactions per month.
What is Savings account?A savings account is a basic type of bank account that allows you to deposit money. You can withdraw your money from it, and most banks pay you compounding interest on the balance of these accounts. The purpose of a savings account is to provide a safe place to stash the money you're not using for regular expenditures. Many banks, credit unions, and other financial institutions offer savings accounts in addition to other accounts.
What are Alternatives to Savings Accounts?Online Savings Accounts-Online- Only accounts are a great option for higher earnings and lower fees. The result of lower fees is that you can find many of the highest-yield savings accounts at online banks. Many online banks also allow you to get started with no minimum deposit, though some of the higher-yielding accounts require larger deposits. Money Market Accounts- Like savings accounts, money market accounts pay interest on your deposits and limit how often you can make certain transfers. However, they typically pay more than savings accounts, and it's easier to spend your money.
What interest?Interest is the price you pay to borrow money or the cost you charge to lend money. Interest is most often reflected as an annual percentage of the amount of a loan. This percentage is known as the interest rate on the loan. For example, a bank will pay you interest when you deposit your money in a savings account
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1. Suppose a firm's cost function is given by C(Q)=6Q+Q^2 when it produces Q units of its product.
This small, profit-maximizing firm is active in a perfectly competitive market. After observing the
going price for its product, it decides to produce 3 units of output: Q=3. What is the firm's elasticity
of supply?
1.5
b. 2*
c. 2.5
d. 3
a.
Answers
Answer:
2.5
Explanation:
because that's the answer
which of the following is a benefit of using a budget
Answers
Budgeting helps you track what you spend and helps you save money. When you are on a budget, you make better financial decisions and spend smarter.
If you need anything else. Let me know!
Hope this helped.
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000 Selling and administrative expenses, $119,000 Sales returns and allowances, $39,000 Gross profit, $499,000 Accounts receivable, $195,000 Sales discounts, $23,000 Allowance for doubtful accounts credit balance, $2,100 Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?
Answers
If Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000. Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. The balance in the allowance for doubtful accounts after bad debt expense is recorded will be: $11,280
First step is to determine the estimated bad debt expense
Bad debts expense=($459,000×2%)
Bad debt expense=$9,180
Now let determine the balance in the allowance for doubtful accounts after bad debt expense is recorded
Balance in allowance for doubtful accounts=$9,180+$2,100
Balance in allowance for doubtful accounts=$11,280
Inconclusion if Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000. Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. The balance in the allowance for doubtful accounts after bad debt expense is recorded will be: $11,280
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what is the importance of analyzing and recording transactions
Answers
Which of the following locations can NOT be insulated to promote energy conservation?
Windows
Walls
Balcony
Roof
Answers
Answer:
balcony
Explanation:
its outside itd be a waste of the energy
1. A company had cash and marketable securities worth $100,000 accounts payables worth $60,000 inventory of $2,501,500, accounts receivables of $5,500,000 short-term notes payable worth $200,000, other current liabilities of 100,000, and other current assets of $212,800. Calculate the company net working capital and describe how managers manage the firm working capital.
Answers
Explanation:
it's very easy answer no need to think much
Explain how each of the following events would affect the equilibrium price and quantity of new textbooks. (Explain which curve(s) would shift and in which direction(s).)
Answers
The events that would affect the equilibrium price and quantity of new textbooks include changes in production costs, shifts in student enrollment, changes in government policies etc.
How do these events impact the equilibrium price and quantity?The changes in production costs will shift the supply curve of new textbooks. If production costs increase, the supply curve would shift to the left resulting in decrease in the equilibrium quantity and an increase in the equilibrium price.
But if production costs decrease, the supply curve would shift to the right leading to an increase in the equilibrium quantity and a decrease in the equilibrium price of new textbooks.
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Among the risks associated with short selling a stock are
Answers
Answer:
the risk that stock loans become expensive and the risk that stock loans are recalled. We show that short selling risk affects prices among the cross-section of stocks. Stocks with more short selling risk have lower returns, less price efficiency, and less short selling.
Step One: You have graduated from college and have established a career. You have been working with the same company for three years. You have saved up $10,000 and need to decide how you will save and invest this money. Your goal is to save as much money in five years as you can for a down payment on a house. Using the principles and strategies of saving and investing, create a saving and investing plan. Remember, a saving and investing plan is an outline or list that names the types of savings or investments you will use. The outline also shows the amount or percentage you will put into each savings account or investment. For this project, evaluate and select at least three investments or savings accounts. Upload the document. Step Two: Select specific accounts and investments. For example, if your outline includes investing $1,000 in stock, research and select a stock. Create a portfolio with a spreadsheet or word processor. See the example below:
Answers
Answer12
Explanation: so it is 6+6+22=2
Consider the economies of Hermes and Gobbledigook, both of which produce gaggles of gop using only tools and workers. Suppose that, during the course of 50 years, the level of physical capital per worker rises by 5 tools per worker in each economy, but the size of each labor force remains the same.
Complete the following tables by entering productivity (in terms of output per worker) for each economy in 2014 and 2034.
Year
Hermes
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker)
2014 11 30 3,000
2034 15 30 3,600
Year
Gobbledigook
Physical Capital Labor Force Output Productivity
(Tools per worker) (Workers) (Gaggles of gop) (Gaggles per worker)
2014 8 30 2,400
2034 12 30 3,600
Initially, the number of tools per worker was higher in Hermes than in Gobbledigook. From 2014 to 2034, capital per worker rises by 4 units in each country. The 4-unit change in capital per worker causes productivity in Hermes to rise by a (larger or smaller)?? amount than productivity in Gobbledigook. This illustrates the concept of (brain drain or increasing return or inward oriented growth or diminishing returns or constant return?)??? , which makes it (easier or more difficult ??) for countries with low output to catch up to those with higher output.
Answers
The productivity (in terms of output per worker) of the economies of Hermes and Gobbledigook can be computed as follows:
1. Hermes
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Gaggles (Gaggles per
of gop) worker)
2014 11 30 3,000 100 (3,000/30)
2034 15 30 3,600 120 (3,600/30)
2. Gobbledigook
Physical Capital Labor Force Output Productivity
Year (Tools per worker) (Workers) (Gaggles (Gaggles per
of gop) worker)
2014 8 30 2,400 80 (2,400/30)
2034 12 30 3,600 120 (3,600/30)
3. The 4-unit change in capital per worker causes the productivity in Hermes to rise by a smaller amount (20%) than the productivity in Gobbledigook (50%). This illustrates the concept of diminishing returns, which makes it easier for countries with low output to catch up to those with higher output.
What is the law of diminishing marginal returns?The law of diminishing returns states that a developed nation's growth rates tend to slow as the economy matures, enabling developing nations to catch up with the former's growth.
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Get in the habit of using the term "we" rather than "I" when
referencing ideas/research throughout the presentation and the Q/A. True or false ?
Answers
The answer is true. Through a presentation, a speaker imparts knowledge to an audience. The typical goals of a presentation are to inform, persuade, inspire, motivate, foster goodwill, or propose a novel concept or service.
Speeches, introductions, lectures, and demonstrations are all examples of presentations. Divide your audience into these three categories to better focus your message: You must include an introduction, a body, and a conclusion in audience presentation. An intriguing start. Explain why your audience will find what you're about to talk about in your introduction valuable or important while providing a brief summary of it. Give the supporting information in a body.
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Which person would suffer the most from inflation?
Group of answer choices
Brittany is a high school senior who has been saving money for all of her senior activities.
Braxton is approaching retirement but continues to work full-time.
Coach Hirsh invests in gold and sees the value of it go up by about 7% year to year.
Gertrude is a retired 80-year old woman living on a fixed income.
Answers
The person that would suffer from inflation is coach Hirsh who invests in gold and later sees the value goes up by 7% year to year. Thus option C is correct.
What is inflation?Inflation is the general rise of prices and directly affects the economy of goods and services. As the general process of the currency rises there is a production in the purchasing capacity.
Inflation can be measured by the inflation rate which is the general price index. Thus Coach Hirsh will suffer most form the inflation due to his loss in investment as value goes up.
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Ex:3 le 8-02-2023 Using a ruler and a pair of compases only, Construct i ∆PQS such that |PQ| = 8cm |QR| = 8cm and ,< PQR=90° the perpendicular bisector of PR label the point of intersecting of the bisector and PR T Produce ST. Such that |PT|= |RT|=9cm What type of quadrilateral is PQRS?
Answers
Answer:
Therefore, the quadrilateral PQRS is a kite.
Explanation:
The given information defines a kite, as the diagonals of a kite are equal in length and bisect each other at right angles. The length of diagonal PQ is 8 cm, and the length of diagonal SR is 8 cm. The perpendicular bisector of PR intersects PR at T such that PT = RT = 9 cm.
what are the types of outsurance company
Answers
The main type of Insurance company includes:
General insurance companyLife insurance companyReinsurance companyWhat is the role of Insurance company?These are financial institution that provide insurance covers to intending policyholders.
Therefore, the main type of Insurance company includes general insurance company, Life insurance company and Reinsurance company.
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Judi Pendergrass is an account representative at Ever Pharmaceuticals. She has a company car for customer visits, which she uses to commute from work to home on Friday nights and from home to work on Monday mornings, 50 weeks per year. Her commute is 26 miles in each direction.Required:Using the commuting rule, what is the valuation of the fringe benefit?
Answers
The valuation of the fringe benefit will be 3600.
How to calculate the benefits?The valuation of the fringe benefit will be calculated thus:
= (2 × miles in each direction) × number of weeks × benefit rate
= (2 × 24) × 50 × 1.50
= 48 × 59 × 1.50
= 3600
In conclusion, the valuation of the fringe benefit will be 3600.
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How many times did Donald trump declare bankruptcy
Answers
if I make $2,000 a day how much is that monthly?
Answers
Answer:
$60,000
Explanation:
If there is an average of 30 days in a month, then you would take $2,000 and multiply it by 30. So,
30 * 2,000 = 60,000
Thus, you would make around $60,000 monthly.
Hope this helps!! If you have questions please ask!
explain why maximizing Production does not always maximize profit
Answers
Wexpro, Inc., produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total $62,000 per ton, one-fourth of which is allocated to product X15. Eight thousand three hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for $16 each, or processed further at a total cost of $9,800 and then sold for $19 each.
Required:
1. What is the financial advantage (disadvantage) of further processing product X15?
2. Should product X15 be processed further or sold at the split-off point?
Answers
Answer:
1) Financial advantage = $15,100
2) X15 should be processed further because it would generate 15,100
Explanation:
A company should process a product further if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Sales revenue after further processing
(19×8,300) 157,700
Sales revenue at the split-off point
(16×8,300) 132,800
Additional sales revenue from further processing 24,900
Less further processing cost (9,800)
Financial advantage 15,100
Financial advantage = $15,100
X15 should be processed further because it would generate 15,100