Answer:
$37,760
Explanation:
The income for the current operation, without further processing, is given by:

If the product is further processed at a cost of $11,200, the company would sell 11,200 units at $31,80 each and 5,200 at $19.20 each, for an income of:

Therefore, the incremental net income of processing further would be:

The incremental net income would be $37,760.
Answer:
Find the answers in the excel file attached.
Explanation:
The impact of the accounting equation has been shown as well.
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