Item Relevant Not Relevant a. $15,000 cost already Incurred to produce b. $20,000 selling price c. $22,000 additional processing costs d. $35,000 revenues from processing
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Zycon has produced 10,000 units of partially finished Product A. These units cost $15,000 to produce, and they can be sold to another manufacturer for $20,000. Instead, Zycon can process the units further and produce finished Products X, Y, and Z. Processing further will cost an additional $22,000 and will yield total revenues of $35,000. Place an X in the appropriate column to identify whether the item is relevant or irrelevant to the sell or process further decision.
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