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Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November 1999, they incurred joint processing costs of $420,000. Production and

Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November 1999, they incurred joint processing costs of $420,000. Production and sales value information for November 1999 are as follows: Product Cases Selling Price/Case Additional Costs/Case Catsup 100,000 $10 $2 Tomato Juice 150,000 $8 $1 Canned Tomatoes 250,000 $12 $3 If the company has a philosophy of marking up their products 20% over cost, the selling price per case of Tomato Juice should be using the net realizable value method (rounded to 2 decimal places): A. $0.86 B. $1.00 C. $2.06 D. $7.00 Red Sauce Canning Company is considering an option to further refine Catsup. By incurring an additional cost of $60,000, they will be able to increase their selling price of Catsup to $11.20 per case. Determine the incremental advantage (disadvantage) of this option? (round to the closest $) A. $60,000 B. ($60,000) C. $260,000 D. ($260,000)

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