A Company Has the Choice of Either Selling 600 Apples

question 103

Multiple Choice

A company has the choice of either selling 600 apples or processing them into applesauce.The company could sell the apples as they are 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 cost 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:

Transverse

Refers to lying or extending across something; perpendicular to the long axis.

Anatomy

The branch of science concerned with the bodily structure of humans, animals, and other living organisms.

-Tomy

A suffix used in medical terminology to denote the cutting or removal of a part of the body; essentially, it indicates a surgical procedure focused on cutting.

Unilateral

Relating to one side only; often used in medical contexts to describe symptoms or conditions affecting only one side of the body.