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Copr.,GoedlThe HoneyPot Corp., farms and packages fresh honey. The variable costs incurred to farm and package the honey are $ 2 . 4 0 per
Copr.,GoedlThe HoneyPot Corp., farms and packages fresh honey. The variable costs incurred to farm and package the honey are $ per ounce. They sell the honey for $ per ounce. Honeycomb is a byproduct of farming the honey. HoneyPot can package the raw honeycomb and sell it as a food product. They can sell the honeycomb food product for $ per ounce. They would incur $ in additional packaging costs to process the raw honeycomb into a food product.
Or HoneyPot could sell the unprocessed honeycomb to a local candlemaker for $ per ounce.
What is the financial advantage or disadvantage if HoneyPot processes the honeycomb into a food product?
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