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Cullumber, Inc. produces a crop of chickens at a total cost of $84,000. The production generates 76,800 chickens which can be sold for $2 each
Cullumber, Inc. produces a crop of chickens at a total cost of $84,000. The production generates 76,800 chickens which can be sold for $2 each to a slaughtering company, or the chickens can be slaughtered in house and then sold for $3.75 each. It costs $83,200 more to turn the annual chicken crop into chicken meat.
If Cullumber slaughters the chickens, determine how much incremental profit or loss it would report?
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