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

question 129

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.
-The net advantage (incremental income) of processing Special Export further into Prime and Feline Surprise would be:

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

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Definitions:

Patient-Controlled Analgesia

Patient-controlled analgesia (PCA) is a method of pain management that allows patients to self-administer a controlled amount of pain medication, typically using a programmable pump.

Medication Administration

The process of providing a medication to a patient in accordance with a prescription, including timing, dosage, and method.

Orthodox Jew

A member of the branch of Judaism that adheres strictly to traditional beliefs and practices.

Patient-Controlled Analgesia

A method allowing patients to self-administer a controlled amount of pain medication through a device, under medical supervision.