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Business, 17.12.2019 23:31 calistaallen6655

Maxim manufactures a cat food product called green health. maxim currently has 10,000 bags of green health on hand. the variable production costs per bag are $2.80 and total fixed costs are $10,000. the cat food can be sold as it is for $8.15 per bag or be processed further into premium green and green deluxe at an additional $3,000 cost. the additional processing will yield 10,000 bags of premium green and 4,000 bags of green deluxe, which can be sold for $7.15 and $5.15 per bag, respectively. if green health is processed further into premium green and green deluxe, the total gross profit would be:

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