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Hoochie [10]
3 years ago
6

Swifty Corporation spent $4400 to produce Product 89, which can be sold as is for $5500, or processed further incurring addition

al costs of $1650 and then be sold for $7700. Which amounts are relevant to the decision about Product 89
Business
1 answer:
Lady bird [3.3K]3 years ago
6 0

Answer:

Relevant:

$5,500

$1,650

$7,700

Explanation:

The only data irrelevant is the first production cost. <u>The $4,400 is not relevant because it is a sunk cost. It will remain constant in both choices.</u> The other costs and income are relevant because they vary on each decision. The $4,400 should not be a part of the decision making process.

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