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Business, 02.07.2019 00:20 05eviebee

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 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:

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