Business, 14.08.2020 01:01 foriegnngal

An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.00. The additional processing cost to complete the finished desk is $5.95. What is the differential revenue if you process further

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Answer from: diegop07

Differential revenue from further processing = $4.05

Explanation:

A business should process further a product 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 .i.e $36 irrelevant to the decision to process further

The differential revenue if the desk is processed further would be the difference between the additional revenue from further process and the further processing cost.

Sales price after the split-off point 75

Sales price at the split-off point 65

Additional sales revenue 10

Further processing cost (5.95)

Differential revenue from further processing 4.05

Differential revenue from further processing = $4.05

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

wheres the chart? so i can answer.

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An unfinished desk is produced for $36.00 and sold for $65.00. A finished desk can be sold for $75.0...

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