Porker Enter proses produces ham from locality rais\'d pigs. The cost of getting
ID: 2757699 • Letter: P
Question
Porker Enter proses produces ham from locality rais'd pigs. The cost of getting the pig for market is Of that has been allocated 10 the him portion of the pig Each p-g produces a ham the 4 approximately 12 pounds and sals for $1.50 par pound. Porker can smoke the hams for an The smoked ham will sal for $255 par pound. By how much will Porker's income change 4 they amok# 300 hams (label at an increase or decrease) as opposed to selling them as is? Sandy Company manufactures three chars: economy, basic and deluxeExplanation / Answer
Answer for question 16
Each Ham Produces 12 pound and sell for $1.50 per pound.
Cost of smoke per Ham = $6
Price of smoked ham = $2.25 per pound
Change in income after smoke
= 300 × 12 × ($2.25 - $1.50) - 300 × $6
=3,600 × $0.75 -$1,800
= $2,700 - $1,800
= $900
Profit will increase by $900 after smoke the Ham.
Hence, Option (C) is correct answer.