(Solved):Magnolia Company produces a product that can either be sold as is or processed further. Magnolia…

 

Question

Magnolia Company produces a product that can either be sold as is or processed further. Magnolia has already spent $86,000 to produce 1,850 units that can be sold now for $79,500 to another manufacturer Alternatively, Magnolia can process the units further at an incremental cost of $260 per unit. If Magnolia processes further, the units can be sold for $395 each.

1. Compute the incremental income if Magnolia processes further.

2. Should

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