Should fish farm produce lox


Fish farm grows salmon in coastal fish enclosures. When an enclosure is empties and the fish are processes, 4,000 pounds of fillets and 1,000 pounds of fish meal are produced at a cost of $12,000. Fillets sell for $3/pound, while fish meal sells for $1/pound. Fish Farm can process fillets further to produce lox. Lox sell for $10/pound. The smoking process costs $2 per pound of lox produces. Also, 3 pounds of fillets are requires to produce one pound of lox. Should Fish farm produce lox?

A. Yes.

B. No.

C. Cannot tell

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Accounting Basics: Should fish farm produce lox
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