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Walters manufactures a specialty food product that can currently be sold for $21.40 per unit and has 19,400 units on hand. Alternatively, it can be

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Walters manufactures a specialty food product that can currently be sold for $21.40 per unit and has 19,400 units on hand. Alternatively, it can be further processed at a cost of $11,400 and converted into 11,400 units of Deluxe and 5,400 units of Super. The selling price of Deluxe and Super are $31.60 and $19.40, respectively. The incremental net income of processing further would be: Multiple Choice $38,440 $49,840 $17,400 $43,400. $11,400. Maxim manufactures a hamster food product called Green Health. Maxim currently has 14,500 bags of Green Health on hand. The variable production costs per bag are $2.70 and total fixed costs are $19,000. The hamster food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 14,500 bags of Premium Green and 3,900 bags of Green Deluxe, which can be sold for $8 and $6 per bag, respectively. Assuming Maxim further processes Green Health further into Premium Green and Green Deluxe, revenue from the two products would be: Multiple Choice $139,400 $138,300 $8.900 $7,800. $1,100

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