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Calculate the incremental net income

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Question - Zane Wheels produces lawn mower tires in batches of 1,200 at a cost of $2.40 each. The tires can be sold without further processing for $5.00 per tire, or can be processed further by injecting solid foam which ensures the tires will never become flat. The solid foam tires can be sold for $11.00 each. The additional processing costs total $6,600 per batch.

Calculate the incremental net income from further production of one batch of solid foam tires.

Reference no: EM131638153

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