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Gala2k [10]
3 years ago
12

Blackberry syrup can be sold for $2.90 per​ unit, or it can be processed further into a specialty blackberry juice and then sold

for $5.40 per unit. If blackberry syrup is processed further into the specialty blackberry​ juice, what would be the overall effect on operating​ income?
Business
1 answer:
Maksim231197 [3]3 years ago
4 0

Answer:

The operating income would increase by $2.54 for each unit sold

Explanation:

If the blackberry syrup is further processed into the specialty blackberry juice, an extra income of $2.54 ($5.40 - $2.90 = $2.54) would be made on each unit sold

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Balance Sheet  (In millions of Dollars)

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Cash                                     $6.0

Accounts Receivable              14.0

Average Inventory                   12.0

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