Company considering expanding its product offerings


Please help with the following problem.

Lake City Plastics currently produces plastic plates and silverware. The company is considering expanding its product offerings to include plastic serving trays. Which of the following are cash flows relevant to the new product?

I. molds needed to form the serving trays

II. projected increase in plate and silverware sales if the trays are produced

III. a portion of the production manager's current annual salary of $75,000

IV. raw materials used in the production of the serving trays

A) I and IV only

B) III and IV only

C) I, II, and IV only

D) I, III, and IV only

e) I, II, III, and IV

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Marketing Management: Company considering expanding its product offerings
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