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Walters manufactures a specialty food product that can currently be sold for $21.60 per unit and has 19,600 units on hand. Alternatively, it can be
Walters manufactures a specialty food product that can currently be sold for $21.60 per unit and has 19,600 units on hand. Alternatively, it can be further processed at a cost of $11,600 and converted into 11,600 units of Deluxe and 5,600 units of Super. The selling price of Deluxe and Super are $31.40 and $19.60, respectively. The incremental net income of processing further would be:
$50,640.
$39,040.
$17,600.
$43,600.
$11,600.
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