Answer:
The correct answer is D.
Explanation:
Giving the following information:
Posh Pillows manufactures two products, pillows, and cushions, from a joint process Pillows are allocated $7,000 of the total joint costs of $30,009 There are 2,900 pillows produced and 2,500 cushions produced each year Pilows can be sold at the split-off point for $10 per unit, or they can be processed further into a deluxe pillow for additional processing costs of $8,300 and sold for $21 for each deluxe pillow.
Incremental income= (21-10)*2900 - 8300= $23,600