Computing the incremental net income

Reference no: EM13143267

Starr Company has already manufactured 50,000 units of Product A at a cost of $50 per unit. The 50,000 units can be sold at this stage for $1,250,000. Alternatively, it can be further processed at a $750,000 total additional cost and be converted into 10,000 units of Product B and 20,000 units of Product C. Per unit selling price for Product B is $75 and for Product C is $50.

Calculate the Incremental Net Income if processed further.

Reference no: EM13143267

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