Dear All,Looking to understand rationale behind this question and the answer as provided in Wiley (Answer provided by Wiley is "Shaping".. While I agree to the explanation, I fail to understand as to why Smoothing can't also be the right answer? Since it too has incremental contribution of 1, same as Shaping.. Any thoughts?A company currently has a four-stage manufacturing process in the following order: Processing, Smoothing, Shaping, and Painting. There is a market for the output of each stage. A newly appointed management accountant has been examining the company's operations, and has prepared the following information.
Given the information presented, selling the output after which one of the following stages will yield the greatest contribution margin?
*Source: Retired ICMA CMA Exam Questions.
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