Walters manufactures a specialty food product that can currently be sold for $22.80 per unit and has 20,800 units on hand. Alternatively, it can be further processed at a cost of $12,800 and converted into 12,800 units of Deluxe and 6,800 units of Super The selling price of Deluxe and Super are $30.80 and $20.80, respectively. The incremental income of processing further would be:

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Chapter16: Cost-volume-profit Analysis
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Walters manufactures a specialty food product that can currently be sold for $22.80 per unit and has 20,800 units on hand.
Alternatively, it can be further processed at a cost of $12,800 and converted into 12,800 units of Deluxe and 6,800 units of
Super. The selling price of Deluxe and Super are $30.80 and $20.80, respectively. The incremental income of processing
further would be:
Multiple Choice
$12.800.
$44.800
$61,440.
$48,640.
$18,800.
Transcribed Image Text:Walters manufactures a specialty food product that can currently be sold for $22.80 per unit and has 20,800 units on hand. Alternatively, it can be further processed at a cost of $12,800 and converted into 12,800 units of Deluxe and 6,800 units of Super. The selling price of Deluxe and Super are $30.80 and $20.80, respectively. The incremental income of processing further would be: Multiple Choice $12.800. $44.800 $61,440. $48,640. $18,800.
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