Maxim manufactures a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand. The variable production costs per bag are $1.80 and total fixed costs are $10,000. The hamster food can be sold as it is for $9.00 per bag or be processed further into Premium Green and Green Deluxe at an additional cost. The additional processing will yield 10,000 bags of Premium Green and 3,000 bags of Green Deluxe, which can be sold for $8 and $6 per bag, respectively.
-The incremental revenue of processing Green Health further into Premium Green and Green Deluxe would be:
A) $96,000.
B) $ 8,000.
C) $ 6,000.
D) $ 2,000.
E) $98,000.
Correct Answer:
Verified
Q37: Net cash flow is cash inflows minus
Q38: Capital budgeting is the process of analyzing:
A)
Q39: The time value of money is considered
Q40: The payback period method, unlike the net
Q41: The potential benefits lost by taking a
Q43: An additional cost incurred, only if a
Q44: The process of restating future cash flows
Q45: A company's required rate of return, typically
Q46: Chang Industries has 2,000 defective units of
Q47: Epsilon Co. can produce a unit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents