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A company has the choice of either selling 600 apples or processing them into applesauce. The company could sell the apples as is for $1,200.
A company has the choice of either selling 600 apples or processing them into applesauce. The company could sell the apples as is for $1,200. Alternatively, the apples could be made into applesauce with incremental costs of $360 for direct materials, $600 for direct labor, and $480 for overhead. The applesauce can be sold for $3,000. What is the amount of incremental income (loss) from processing the apples into applesauce?
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