Maxim Manufactures a Hamster Food Product Called Green Health

question 81

Multiple Choice

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 $1.80 and total fixed costs are $10,000.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 10,000 bags of Premium Green and 3,000 bags of Green Deluxe,which can be sold for $8 and $6 per bag,respectively.
-The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be:

• A)$98,000.
• B)$96,000.
• C)$8,000.
• D)$6,000.
• E)$2,000.

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Definitions:

Oxygen

A chemical element with the symbol O and atomic number 8, essential for most life forms on Earth as it is a key component of the respiratory processes of most living cells.

Insects

Small, arthropod animals characterized by having a segmented body, six legs, and generally one or two pairs of wings.

Convergent Evolution

Convergent evolution is the independent origin of similar traits in separate evolutionary lineages.

Body Plans

The general structure and layout of an organism's body, including its symmetry, segmentation, and arrangement of appendages.