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QUESTION 13 Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs

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QUESTION 13 Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $3.50 and total fixed costs are $10,000. The hamster food can be sold as it is for $8.85 per bag or be processed further into Premium Green and Green Deluxe at an additional $2300 cost. The additional processing will yield 10,000 bags of Premium Green and 3300 bags of Green Deluxe, which can be sold for $7.85 and $5.85 per bag, respectively. The net advantage (incremental income) of processing Green Health further into Premium Green and Green Deluxe would be: O $97,805 O $9305. O $2300 $95,505 O $7005 QUESTION 14 Minor Electric has received a special one-time order for 600 light fixtures (units) at $12.00 per unit. Minor currently produces and sells 3000 units at $13.00 each. This level represents 75% of its capacity. Production costs for these units are $15:00 per unit, which includes $10.00 variable cost and $5.00 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $650 with a zero salvage value. Management expects no other changes in costs as a result of the additional production. If Minor wishes to earn $1150 on the special order, the size of the order would need to be: O 50 units. O 900 units. O 3600 units. O 840 units. O 1800 units

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