Business, 05.05.2020 05:01 u8p4

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 $3.30 and total fixed costs are $10,000. The cat food can be sold as it is for $8.65 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,500 cost. The additional processing will yield 10,000 bags of Premium Green and 3,500 bags of Green Deluxe, which can be sold for $7.65 and $5.65 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be: Multiple Choice $93,775. $98,775. $96,275. $50,775. $60,775.

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Maxim manufactures a cat food product called Green Health. Maxim currently has 10,000 bags of Green...