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Maxim manufactures a hamster food product called Green Health Maxim currently has 18,500 bags of Green Health an hand. The variable production costs per bag

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Maxim manufactures a hamster food product called Green Health Maxim currently has 18,500 bags of Green Health an hand. The variable production costs per bag are $3.50 and total fixed costs are $27.000. The hamster food can be sold as it is for $10.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 18,500 bags of Premium Green and 4700 bags of Green Deluxe which can be sold for $9 and 57 per bag, respectively. The Incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be: Multiple Choice $199.400 $9.400 $194,400 $5,000 556.400

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