Reference: 23_01 Marsden Manufactures a Cat Food Product Called Special Export. Marsden

question 107

Multiple Choice

Reference: 23_01
Marsden manufactures a cat food product called Special Export. Marsden currently has 10,000 bags of Special Export on hand. The variable production costs per bag are $1.80 and total fixed costs are $10,000. The cat food can be sold as it is for $9 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $2,000 cost. The additional processing will yield 10,000 bags of Prime Cat Food and 3,000 bags of Feline Surprise, which can be sold for $8 and $6 per bag, respectively.
-If Special Export is processed further into Prime Cat Food and Feline Surprise,the total gross profit would be:

• A) $68,000
• B) $78,000
• C) $96,000
• D) $98,000
• E) $100,000

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Definitions:

Selectively Exaggerated

The deliberate overstatement or amplification of certain aspects while minimizing or ignoring others for specific impacts.

Machismo

A cultural attitude or behavior marked by strong or aggressive masculine pride.

Complex and Distorted

Describes situations or information that are complicated and not presented in a clear, accurate manner.

Ethnocentric Intergroup Attribution

The tendency to attribute positive behaviors and outcomes to one's own group and negative behaviors and outcomes to other groups based on ethnic or cultural biases.