Two Different Products Are Being Considered for Production

Essay

Two different products are being considered for production. The cost structures are listed below on a per unit basis. Which product should be produced, using revenue retrieval analysis?
$$\begin{array} {| l | l | l | l | l |} \hline\text { Product } & & & & \\\text { Blue } & \text { Resale Revenue } & \text { Recycling Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 4.25 & \$ 3.81 & \$ 1.26 & \$ 2.48 \\\hline \text { Part B } & \$ 5.78 & \$ 2.14 & \$ 1.04 & \$ 1.07 \\\hline \text { Part C } & \$ 2.13 & \$ 0.87 & \$ 0.92 & \$ 0\\\hline\end{array}$$ $$\begin{array} {| l | l | l | l | l | } \hline \text { Product } & & & & \\\text { Yellow } & \text { Resale Revenue } & \text { Recycling Revenue } & \text { Processing Cost } & \text { Disposal Cost } \\\hline \text { Part A } & \$ 5.84 & \$ 6.54 & \$ 2.16 & \$ 0.88 \\\hline \text { Part B } & \$ 6.14 & \$ 5.45 & \$ 3.48 & \$ 0.97 \\\hline \text { Part C } & \$ 0.85 & \$ 0.69 & \$ 0.41 & \$ 0.31 \\\hline\end{array}$$