Answer:
$30,800
Explanation:
This can be calculated as follows:
Standard price revenue = $150 × 280 = $42,000
Original cost = $20 × 280 = $5,600
Defective sales revenue = $30 × 280 = $8,400
Extra processing cost = $10 × 280 = $2,800
Actual revenue forgo from defective sales = Defective sales revenue - Extra processing cost
Actual revenue forgo from defective sales = $8,400 - $2,800 = $5,600
Total incremental income = Standard price revenue - Original cost - Actual revenue forgo from defective sales
Total incremental income = $42,000 - $5,600 - $5,600 = $30,800
Therefore, the total incremental income from further processing is $30,800.
