Question
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November, they incurred joint processing costs of $420,000. Production and sales
Red Sauce Canning Company processes tomatoes into catsup, tomato juice, and canned tomatoes. During November, they incurred joint processing costs of $420,000. Production and sales value information for November are as follows: Product Selling Additional Price/Case Costs/Case 100,000 $10 $2 Cases Catsup Tomato 150,000 $8 Juice Canned 250,000 $12 Tomatoes $1 $3 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 $)
Question 15 options:
($60,000)
$60,000
($260,000)
$260,000
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