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Business, 19.11.2019 04:31 bunbun2913

Maxim manufactures a cat food product called green health. maxim currently has 10,000 bags of green health on hand. the variable production costs per bag are $3.80 and total fixed costs are $10,000. the cat food can be sold as it is for $9.15 per bag or be processed further into premium green and green deluxe at an additional $2,000 cost. the additional processing will yield 10,000 bags of premium green and 3,000 bags of green deluxe, which can be sold for $8.15 and $6.15 per bag, respectively. if green health is processed further into premium green and green deluxe, the total gross profit would be:

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