Walters manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternatively, it can be further processed at a cost of $12,000 and converted into 12,000 units of Deluxe and 6,000 units of Super. The selling price of Deluxe and Super are $30 and $20, respectively. The incremental income of processing further would be:

A. $44,000.
B. $18,000.
C. $40,000.
D. $28,000.
E. $12,000.


Answer: D

Business

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