EASY:

Magnolia Company produces a product that can either be sold as is or processed further. Magnolia has already spent $72,000 to produce 1,800 units that can be sold now for $93,500 to another manufacturer. Alternatively, Magnolia can process the units further at an incremental cost of $260 per unit. If Magnolia processes further, the units can be sold for $490 each. Compute the incremental income if Magnolia processes further. If a cell does not require an answer, leave it blank.

Process Further Incremental Sell as is Amount $93,500 882,000 $ 788,500 468,000 $93,500 414,000 $ 320,500 Sales Additional processing costs 468,000 Income (loss) The company should: Sell as is Process further