Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $1.10 per unit. The monthly fixed costs associated with making the candies include:

Master candy-makers salary	$ 3,880
Depreciation of candy-making equipment	400
Salary of salesperson dedicated to this product	2,000
Total fixed costs	$ 6,280

What is the incremental contribution margin earned by the company when it processes raw honey into one container of candies?

Multiple Choice

$0.70

$0.90

$0.50

$0.10