Answered

IDNLearn.com is your go-to resource for finding expert answers and community support. Get accurate and timely answers to your queries from our extensive network of experienced professionals.

Kobe Company has manufactured 200 partially finished cabinets at a cost of $100,000. These can be sold as is for $120,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $24,000, and the finished cabinets could be sold for $160,000. If Kobe Company processes the cabinets further, incremental income is:

Sagot :

Anthougoidn

If Kobe Company processes the cabinets further, incremental income is $16,000.

What is incremental income?

The incremental income represents the additional gain that Kobe Company obtains from further processing of the partially finished cabinets.

Data and Calculations:

Cost of 200 partially finished cabinets = $100,000

Sales revenue from the partially finished cabinets = $120,000

Income without further processing = $20,000 ($120,000 - $100,000)

Cost of further processing = $24,000

Sales revenue from further processing = $160,000

Total income after further processing = $36,000 ($160,000 - $100,000 - $24,000)

Incremental income = $16,000 ($36,000 - $20,000)

Thus, if Kobe Company processes the cabinets further, incremental income is $16,000.

Learn more about incremental income at https://brainly.com/question/13477431

#SPJ1

Your participation means a lot to us. Keep sharing information and solutions. This community grows thanks to the amazing contributions from members like you. Find precise solutions at IDNLearn.com. Thank you for trusting us with your queries, and we hope to see you again.