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Wildhorse, Inc. produces milk at a total cost of $ 80,520. The production generates 73,200 gallons of milk which can be sold for $ 2
Wildhorse, Inc. produces milk at a total cost of $ 80,520. The production generates 73,200 gallons of milk which can be sold for $ 2 per gallon to a pasteurization company, or the milk can be processed further into ice cream and then sold for $ 5 per gallon. It costs $ 91,500 more to turn the annual milk supply into ice cream.
(a)
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If Wildhorse processes the milk into ice cream, how much is the incremental profit or loss?
select an option Incremental profitIncremental loss | $ enter a dollar amount |
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