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Question 41

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JJ Enterprises currently manufactures two products, A and B. It is considering adding a new product, Product C. The following table shows current information for products A and B, as well as projected data for Product C.
Use the following to answer questions  JJ Enterprises currently manufactures two products, A and B. It is considering adding a new product, Product C. The following table shows current information for products A and B, as well as projected data for Product C.    *NOTE: If Product C is produced, one-fourth of the company's common costs, which are fixed costs, will be allocated to Product C, with one-half and one-fourth allocated to products A and B, respectively. -If JJ Enterprises adds Product C,the total incremental revenue will be: A) $1,125,000 B) $ 200,000 C) $ 70,000 D) $ 7,500 *NOTE: If Product C is produced, one-fourth of the company's common costs, which are fixed costs, will be allocated to Product C, with one-half and one-fourth allocated to products A and B, respectively.
-If JJ Enterprises adds Product C,the total incremental revenue will be:


A) $1,125,000
B) $ 200,000
C) $ 70,000
D) $ 7,500

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