Answer:
The financial advantage of processing further = $17,800
Explanation:
1. Sale value if processed further = 8,300 x 13 = $107,900
Sale value if processed further = 8,300 x 10 = $83,000
Incremental revenue = Sale value if processed further - Sale value if processed further = $107,900 - $83,000
Incremental revenue = $24,900
Cost of further processing = $7,100
Incremental profit (loss) = Incremental revenue - Cost of further processing
Incremental profit (loss) = $24,900 - $7,100 = $17,800
Therefore, the financial advantage of processing further = $17,800
