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Maxim manufactures a hamster food product called Green Health Maxim currently has 10,000 bags of...

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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 $2.90 and total fixed costs are $10,000. The hamster food can be sold as it is for $8 25 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,900.cost. The additional processing will yield 10,000 bags of Premium Green and 3,900 bags of Green Deluxe, which can be sold for $7.25 and $5.25 per bag, respectively. The net advantage incremental income of processing Green Health further into Premium Green and Green Deluxe would be Multiple Choice 192.975 0.075

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