Question
Walter Farms has already spent $11,600 to harvest vegetables. The vegetables can be sold as is for $208,800. Instead, the company could incur further processing
Walter Farms has already spent $11,600 to harvest vegetables. The vegetables can be sold as is for $208,800. Instead, the company could incur further processing costs of $111,360 and process the vegetables into salsa. The resulting salsa can be sold for $292,320. The incremental income to sell the vegetables as is is
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$16,240 higher than the income from processing further into salsa.
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$27,840 higher than the income from processing further into salsa.
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$27,840 lower than the income from processing further into salsa.
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$83,520 higher than the income from processing further into salsa.
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$83,520 lower than the income from processing further into salsa.
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