Answer:
Incremental Income=$8655
Explanation:
To calculate the incremental income, first, we need to calculate the net income of 10000 bags of Green Health and compare to the net income of processing Green Health further into Premium Green and Green Deluxe.
Green Health:
Sales=10000*9,35= 93500
Variable Cost= 10000*2,10=21000
Fixed cost= 10000
Net profit= 62500
Premium Green and Green Deluxe.
Premium Green sales=10000*8,35= 83500
Green Deluxe sales=3300*6,35=20955
Variable costs= 21000+2300=23300
Fixed costs=10000
Net profit=71155
Incremental Income=71155-62500=8655