Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Hill co. Can further process product o to produce product p. Product o is currently selling for $60 per pound and costs $42 per pound to produce. Product p would sell for $82 per pound and would require an additional cost of $13 per pound to produce.

Sagot :

The Hill Co. should not further produce Product P from Product P.

We need to calculate the incremental cost and incremental revenue of producing P to understand the profit or loss margin.

Incremental revenue = Selling product of P - Selling product of O

Incremental revenue = 82 - 60

Performing subtraction

Incremental revenue = $22

Incremental cost = Cost of producing O - Cost of producing P

Incremental cost = 42 - 13

Performing subtraction

Incremental cost = $29

It is clear that incremental cost is more than incremental revenue, so Hill Co. should not continue the production.

Learn more about incremental cost -

https://brainly.com/question/25811981

#SPJ4

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.