A company has the choice of either selling 600 apples or processing them into applesauce....
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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 income (loss) from processing the apples into applesauce? A. $3.00 per unit. B. 5(3.00) per unit. C. $7.00 per unit. D. $(0.60) per unit 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 income (loss) from processing the apples into applesauce? A. $3.00 per unit. B. 5(3.00) per unit. C. $7.00 per unit. D. $(0.60) per unit
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