Health Foods Company sells raw snacks as well as protein bars made from raw ingredients. Health Foods currently has a large amount of dried fruit on hand, which can be sold as a raw snack food or processed further into one of its protein bars. There are 200 snack-size packages of dried fruit in the warehouse, each of which could sell for $8. On the other hand, Health Foods could process the fruit into protein bars that sell for $12 per bar. The additional processing cost for all 200 packages of fruit is $1,500, and each package of fruit can be processed into two protein bars.

Should Health Foods Company sell the packages of dried fruit or process further into protein bars?

Multiple Choice

• Sell unprocessed, because the incremental loss from processing further is $700

• Sell unprocessed, because the incremental loss from processing further is $1,700

• Process further, because the incremental profit from processing further is $700

• Process further, because the incremental profit from processing further is $1,700