NOWInjuizitive for Princ e Choice CH. 21,23, 24 Saved Help Save & Exit Walters m

Question

NOWInjuizitive for Princ e Choice CH. 21,23, 24 Saved Help Save & Exit Walters manufactures a specialty food product that can currently be sold for $22.10 per unit and has 20100 units on hand. Alternatively, it can be further processed at a cost of $12,100 and converted into 12,100 units of Deluxe and 6,100 units of Super. The selling price of Deluxe and Super are $3010 and $2010, respectively The incremental net income of processing further would be: Multiple Choice $30,510 $42.610 $18,100 $44,100 $12,100

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Current sales proceeds

= Quantity x Sales price

= 20,100 x $22.10

= $ 444,210

Expected revenue

= Net Proceeds from converted products – Cost of processing

= 12,100 x $30.10 + 6,100 x $20.10 - $12,100

= $ 474,720

So, Incremental net income from processing further

= New Income – Old Income

= $ 474,720 - $ 444,210

= $30,510

So, as per above calculations, option A is the correct option

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.