codycoker4200
21.11.2019 •
Business
Determine why, given the advantages of international diversification, some firms choose not to expand internationally. provide specific examples to support your response. as firms attempt to internationalize, they may be tempted to locate their facilities where business regulation laws are lax. discuss the advantages and potential risks of such an approach, using specific examples to support your response.
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Ответ:
It is more convenient to continue processing.
Explanation:
Giving the following information:
Barnes manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternatively, it can be further processed for $12,000 and converted into 12,000 units of Exceptional and 6,000 units of Premium. The selling price of Exceptional and Premium are $30 and $20, respectively.
We don't have the information regarding the costs of processing further. Therefore, we will base our analysis in sales.
Sell now= 22*20,000= $440,000
Continue processing= 12,000*30 + 6,000*20= $480,000
It is more convenient to continue processing.