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Porker Enterprises produces ham from locally raised pigs. The cost of getting the pig ready for market is about $80 per pig. $7 of that

Porker Enterprises produces ham from locally raised pigs.

The cost of getting the pig ready for market is about $80 per pig. $7 of that has been allocated to the ham portion of the pig.

Each pig produces a ham that is approximately 12 pounds and sells for $1.50 per pound.

Porker can smoke the hams for an additional $6 per ham. The smoked ham will sell for $2.25 per pound.

By how much will Porker's income change if they smoke 300 hams (label as an increase or decrease) as opposed to selling them as is?

a.

$1,200 decrease

b.

$2,700 increase

c.

$900 increase

d.

$900 decrease

e.

none of the above

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