A Company Has the Choice of Either Selling 600 Apples

question 80

Multiple Choice

A company has the choice of either selling 600 apples or processing them into applesauce.The company could sell the apples as is for $2.00 per unit.Alternatively,each apple could be made into one unit of applesauce with incremental costs of $0.60 per unit for direct materials,$1.00 per unit for direct labor,and $0.80 per unit for overhead,and then sold for $5.00 each.
-What is the amount of incremental revenue from processing the apples into applesauce?

• A)$3.00 per unit.
• B)$5.00 per unit.
• C)$7.00 per unit.
• D)$2.40 per unit.
• E)$0.60 per unit.

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Definitions:

Digestive System

The group of organs responsible for the breakdown and absorption of food and nutrients, and the elimination of waste.

Calcium Deposits

Mineral build-up in body tissues, which can lead to various conditions depending on their location.

Iron Deposits

Accumulations of iron in the body, which may occur in various tissues and organs, possibly leading to health issues.

Synovial Fluid

A viscous fluid found in the cavities of synovial joints that reduces friction between the articular cartilage during movement.