Jones Co can further process Product B to product Product B1. Product B is currently selling for $45
Jones Co can further process Product B to product Product B1. Product B is currently selling for $45 per pound and costs $30 per pound to produce. Product B1 would sell for $80 per pound and would require an additional cost of $18 per pound to product. Should Jones produce Product B1 and what is the effect on net income?
Select one:
a. Process futher, Jones will make $17 per pound
b. Process further, Jones will make $32 per pound
c. Process further, Jones will make $27 per pound
d. Process further, Jones will make $62 per pound