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?

Question

Business

Reid Spears

30 September, 10:45

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?

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Dearest · Answer 1

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