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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
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 53.10 and total fixed costs are $10,000. The cat food can be sold as it is for $8.45 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,700 cost. The additional processing will yield 10.000 bags of Premium Green and 3 700 bags of Green Deluxe, which can be sold for $7.45 and $5.45 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be Muitiple Choice $97,365 O $50.965 O $60,965 $91,965 $94,665
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