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Maxim has already spent $28,900 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand
Maxim has already spent $28,900 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand that can be sold for $91,600. Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,125. If Maxim processes further, the Premium Green can be sold for $99,750. The incremental income to process further is: Multiple Choice $8,150 $(8,150) $2,025 $(2.025) $3.025
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