Research and development at Muesli AG has been working on creating a product that could move

Muesli AG into new markets. The new product is a granola energy bar created by processing Mixed Fruit

muesli further into a bar to be sold as a quick snack or even a convenient breakfast bar. The new muesli

granola bar will be wrapped in a special biodegradable waxed paper printed with the Muesli AG logo$.$

The ingredients for $8,0001$Kg boxes of muesli produce $24,000$ granola bars. Management plans to sell

the granola bars for $2\mathrm{.}95$ each.

$12.$ Based on the costs of manufacturing mixed fruit muesli and the estimated costs to convert the

muesli into granola bars, determine whether it is more profitable to sell the muesli as is or

process it further into granola bars?

$13.$ Given the results of this analysis, what advice would you give the management at Muesli AG$?$

Discuss the implications of your findings.