The production process of a company s main product yields a by-product Production costs or $700,000 are incurred during this process and $300,000 m additional costs are incurred to finalize the main product. The by-product can be sold for $200 000 without further processing A manager proposed the conversion of the byproduct into another product that would cost $100,000 and generate revenue of $250,000. When deciding on this proposal the company should