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Help Save & Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a
Help Save & 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: d Master candy-maker's salary Depreciation of candy-making equipment Salary of salesperson dedicated to this product Total fixed costs $3,880 400 2,000 $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 Salary of salesperson dedicated to this product Total fixed costs 000 $6,280 Vhat 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
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