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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

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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 are $2.50 and total fixed costs are $10,000. The cat food can be sold as it is for $9.75 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 $8.75 and $6.75 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, the total gross profit would be: $115,175. $74,775. $84,775. $109,775. $112,475

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