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18. Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag of cookies is $.65 and the bag sells for

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18. Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The cost of producing a bag of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookies further by dipping them in chocolate. The additional processing costs would be $.50 per bag and the sales price of the chocolate-dipped cookies would be $4.20 per bag. If Hannah can sell 5,000 bags of either type of cookie per year, which of the following statements is TRUE if she chooses to process the cookies further? a. Net income would increase by $2,250 per year. b. Net income would decrease by $2,500 per year. c. Net income would decrease by $250 per year. d. Net income would increase by $15,250 per year. 19. Carolina Potato Inc. currently sells cut sweet potatoes for $.85 per can. The cost of producing the sweet potatoes is \$.18 per can. Carolina Potato is considering starting a line of mashed sweet potatoes. The additional processing costs would be $.06 per can and each can would sell for $.95. Which of the following pieces of information is NOT relevant to the decision to sell "as is" or process further? a. $.06 additional processing cost b. $.18 production cost c. $.95 sales price d. demand for pureed sweet potatoes

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