XYZ, Inc. produces ground beef at a total cost of 81,000 dollars. The production generates...
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XYZ, Inc. produces ground beef at a total cost of 81,000 dollars. The production generates 90,000 pounds of ground beef which can be sold for 1.20 per pound, or the ground beef can be processed further into hamburger patties and then sold for 2.60 per per pound. It costs 115,000 to turn the annual supply of ground beef into hamburger patties. INSTRUCTIONS: If XYZ processes the ground beef into hamburger patties, how much is the incremental profit or loss? Should the company process the ground beef into hamburger patties or sell it as is?
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