Yummy Granola's Decision on Selling Premium Granola

What costs should be considered when Yummy Granola is deciding to sell premium granola?

a. Cost of regular granola refining

b. Cost of organic grains for premium granola

c. Total cost of selling regular and premium granola

d. All of the above

Answer:

d. All of the above

Yummy Granola is considering selling premium granola at $9.50/pound, with the cost of organic grains for premium granola at $1.15/pound. In making the decision to sell premium granola, Yummy Granola should consider all relevant costs, including the cost of regular granola refining and the total cost of selling both regular and premium granola.

Relevant costs are avoidable costs incurred only when making certain business decisions. They help eliminate unnecessary data and make the decision-making process easier. Therefore, when deciding to sell premium granola, Yummy Granola should consider all relevant costs to make an informed decision.

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