Nichols Corporation Is Trying to Decide Whether to Sell Its

Multiple Choice

Nichols Corporation is trying to decide whether to sell its carpet-quality thread or to manufacture the carpets itself.Under which of the following conditions should Nichols sell its thread?

A) The incremental revenue from further processing is less than the incremental costs.
B) The incremental revenue from further processing is greater than the incremental costs.
C) The incremental cost from further processing is less than the cost of manufacturing the thread.
D) The incremental cost from further processing is greater than the cost of manufacturing the thread.