Solved

Reason Food Store Has 4,000 Pounds of Raw Pork Approaching

Question 104

Multiple Choice

Reason Food Store has 4,000 pounds of raw pork approaching its expiration date.Each pound has a cost of $4.50.The pork could be sold 'as is' for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli.The cost of roasting the pork will be $2.80 per pound and each pound could be sold for $6.50.What should be done with the pork and why?


A) The pork should be thrown away since there will be a loss with each of the other alternatives.
B) The pork should be processed further since the sales price increases by $3.50 per pound and the cost only increases by $2.80 per pound.
C) The pork should be sold 'as is' since there is no reason to put more cost into a product that is already selling below its $4.50 cost.
D) It does not matter which option is undertaken since all alternatives result in a loss.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions