The incremental benefit or (loss) of processing Kharton into Kraxton is
A) $74,000.
B) $22,000.
C) ($22,000).
D) ($96,000).
E) $170,000.

Name: The incremental benefit or (loss) of processing Kharton into Kraxton is A) $74,000. B) $22,000. C) ($22,000). D) ($96,000). E) $170,000.
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Quizplus · Accepted Answer

Incremental Revenues: [3,000 * $102] - [4,000 * $58] = $306,000 - $232,000 = $74,000
Incremental Costs: [3,000 * $32] = ($96,000)
Company loses $74,000 - $96,000 = ($22,000)

The Incremental Benefit or (Loss) of Processing Kharton into Kraxton