1. A) Canned foods unlimited is trying to decide whether to sell its canned corn in whole kernels or process it further into creamed corn. The cost of producing whole kernel corn is $0.20 per can, and the can sells for $0.75. Additional processing costs to produce creamed corn are $0.10 per can, and each can sells for $0.89. If the corn is processed further and 10,000 cans are sold as craemed corn rather than whole kernel corn, what is the effect on net income?

B) Canned foods unlimited also sells hand-made frozen treats at various community events for $3.00 each. The costs associated with each treat are estimated at $1.70 of variable costs and $0.40 of fixed overhead costs at the current level of sales. A youth group, whose members attend spoting events once a year, wishes to buy 150 treats for $2.00 each from Canned foods unlimited at an upcoming softball outing. By what amount would net income be increased of decreased if the special order is accepted? What is the minimum price that could be charged for this special product?