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:

Explananda

Phenomena or facts that are explained within the context of scientific or philosophical inquiry.

Hypothesis

The proposition (or propositions) in an explanation that purport to show why another proposition (the explanandum) is true.

Propositions

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Explanandum

The phenomenon or event that is explained by a scientific theory or investigation.