1. Walters manufactures a specialty food product that can currently be sold for $21.70 per unit and has 19,700 units on hand. Alternatively, it can be further processed at a cost of $11,700 and converted into 11,700 units of Deluxe and 5,700 units of Super. The selling price of Deluxe and Super are $31.30 and $19.70, respectively. The incremental income of processing further would be:

2.Rosies Company has three products, P1, P2, and P3. The maximum Rosies can sell is 75,000 units of P1, 54,000 units of P2, and 42,000 units of P3. Rosies has limited production capacity of 39,000 hours. It can produce 12 units of P1, 6 units of P2, and 3 units of P3 per hour. Contribution margin per unit is $5 for the P1, $15 for the P2, and $25 for the P3. What is the most profitable sales mix for Rosies Company?

3.Maxim manufactures a hamster food product called Green Health. Maxim currently has 23,000 bags of Green Health on hand. The variable production costs per bag are $3.30 and total fixed costs are $25,000. The hamster food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 23,000 bags of Premium Green and 4,500 bags of Green Deluxe, which can be sold for $8 and $7 per bag, respectively. The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be: