A company has a process that results in 15,000 pounds of Product A that can be sold for $16 per pound. An alternative would be to process Product A further at a cost of $200,000 and then sell it for $28 per pound. Should management sell Product A now or should Product A be processed further and then sold? What is the effect of the action?
A.Sell now, the company will be better off by $200,000.B.Process further, the company will be better off by $20,000.
C.Sell now, the company will be better off by $20,000.
D.Process further, the company will be better off by $180,000.