Business, 28.11.2019 20:31 vale2652

Maxim manufactures a hamster food product called green health. maxim currently has 15,500 bags of green health on hand. the variable production costs per bag are $2.90 and total fixed costs are $21,000. 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 15,500 bags of premium green and 4,100 bags of green deluxe, which can be sold for $9 and $7 per bag, respectively. assuming maxim further processes green health further into premium green and green deluxe, revenue from the two products would be:

a. $163,200.
b. $13,200.
c. $8,200.
d. $5,000.
e. $168,200.

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