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A company manufactures a hamster food product called Green Health. The company currently has 23,000 bags of Green Health on hand, at a manufacturing cost
A company manufactures a hamster food product called Green Health. The company currently has 23,000 bags of Green Health on hand, at a manufacturing cost of $4.00 per bag. The namster food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost of $25,000. The additional processing will yield 23,000 bags of Premium Green and 4,500 bags of Green Deluxe, which can be sold for $8 and $7 per bag, respectively. Assuming the product is processed further, how much would et income change compared to selling the product in its current state? Multiple Choice $16,500 decrease. $215,500 increase. $8,500 increase. No change. $100,900 decrease. A company expects its two subsidiaries to have the following net income/loss for the next year. If the company decides to eliminate Subsidiary B, what will be the company's projected net income/loss for the next year? Multiple Choice $12,000 net income. $10,000 net loss. $9,000 net loss. $5,000 net income. $19,000 net income
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