Answer:
The correct option is c. $11,000
Explanation:
For computing the revenues from both the products, first we have to calculate the sales value of premium green and green deluxe which is shown below:
Sales value of Premium Green = Production of bags × selling price of premium green
= 19,000 × $8
= $152,000
And, Sales value of Green Deluxe = Production of bags × selling price of green deluxe
= 5,000 × $6
= $30,000
So, the total sales value of both products is equals to
= $152,000 + $30,000
=$182,000
Now,
We have to compute the Green Health revenue which includes additional cost .The calculation is shown below
= Bags production × Additional cost per unit
= 19,000 × $9
= $171,000
So, the incremental revenue would be equals to
= Total sales revenue of both products - Green Health revenue
= $182,000 - $171,000
= $11,000
Hence, the incremental revenue is $11,000
Thus, the correct option is c. $11,000
