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Zane Wheels produces lawn mower tires in batches of 1,200 at a cost of $2.40 each.The tires can be sold without further processing for $5.00
Zane Wheels produces lawn mower tires in batches of 1,200 at a cost of $2.40 each.The tires can be sold without further processing for $5.00 per tire, or can be processed further by injecting solid foam which ensures the tires will never become flat.The solid foam tires can be sold for $11.00 each.The additional processing costs total $6,600 per batch.
Calculate the incremental net income from further production of one batch of solid foam tires.
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