Question
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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