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Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variabe production costs per bag

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Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variabe production costs per bag are $2.70 and total fixed costs are $10,000. The hamster food can be sold as it is for $9.95 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,900 cost. The additional processing will yield 10,000 bags of Premium Green and 3,900 bags of Green Deluxe, which can be sold for $8.95 and $6.95 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be: Multiple Choice $17105 $113,705 $14,205 13 o1Nex $17,105. $113,705 $14,205 $2.900 $116,605 Prey 13 of 30

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