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Graham Corp. has 1,000 cartons of oranges that were harvested at a cost of $26,500. The oranges can be sold as is for $30,000. The oranges can be processed further into orange juice at an additional cost of $12,500 and be sold at a price of $46,000. The net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be: rev: 12_08_2020_QC_CS-243270 Multiple Choice $16,000. $(16,000). $(3,500). $3,500. $33,500.

Answer :

Tundexigo

Answer:

C. $3,500

Explanation:

The total cost of orange juice = $26,500 + $12,500

The total cost of orange juice = $39,000

So, the profit on the orange juice = $46,000 - $39,000 = $7,000

Profit when oranges are sold without juice = $30,000 - $26,500

Profit when oranges are sold without juice = $3,500

So, extra income = $7,000 - $3,500 = $3,500

Thus, the net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be is $3,500

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