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Madim 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 $3.60 and total fixed costs are $10,000. The hamster food can be sold as it is for $8.95 per bag or be processed further into Premium Green and Green Deluxe at an additional $2200 cost. The additional processing will yield 10,000 bags of Premium Green and 3200 bags of Green Deluxe which can be sold for $7.95 and $5.95 per bag respectively. The net advantage incremental income of processing Green Health further into Premium Green and Green Deluse would be 596,340 590.540 $6540 R $9040 52200