Graham Corporation has 1,000 cartons of oranges that were harvested at a cost of $30,400. The oranges can be sold as is for $36,400. The oranges can be processed further into orange juice at an additional cost of $13,000 and be sold at a price of $53,000. The incremental income (loss) from processing the oranges into orange juice would be:

To calculate the incremental income or loss from processing the oranges into orange juice, we need to compare the potential income from selling the oranges as is versus the potential income from selling them as orange juice, taking into account the additional cost of processing.

1. First, calculate the potential income from selling the oranges as is: $36,400.

2. Then, calculate the potential income from selling the oranges as orange juice: $53,000.

3. Subtract the additional cost of processing the oranges into orange juice: $53,000 -$13,000 = $40,000.

4. Finally, subtract the potential income from selling the oranges as is from the potential income from selling them as orange juice: $40,000 -$36,400 = $3,600.

So, the incremental income from processing the oranges into orange juice would be $3,600. If this number were negative, it would represent a loss.