Gavin West is a commercial fisherman, and he has just returned from a trip off the coast of Maine. He has calculated the cost of his catch as follows:...

Gavin is considering turning the flounder into fish paste. The incremental cost of this operation is $10,100. Each pound of flounder yields one-half pound of paste, and the paste sells for $8 per pound. Will Gavin be better off selling the flounder or turning it into paste?

Net incremental  benefitcost