Question

Ahngram Corp. has 1,000 carton of oranges that cost $20 per carton in direct costs and $19.00 per carton in indirect costs and sold for $40 per carton. The oranges can be processed further into orange juice at an additional cost of $15.00 and sold at a price of $66. The incremental income (loss) from processing the oranges into orange juice would be: Multiple Choice Ο Ο $48,000. Ο $51,000. Ο $41,000. Ο ($48,000). Ο $40,000.

Answer 1

The incremental income from processing the oranges into orange juice would be =$51000.

Step-by-step explanation:

Incremental income from further process= (Selling price per unit- Additional cost per unit)*No. of units sold

= ($66 per unit-$15 per unit)*1000 units

= $51000