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Question - Maxim manufactures a cat food product called Green Health. Maxim currentlyhas 10,000 bags of Green Health on hand. The variable production costs per bag are $2.30 and total fixed costs are $10,000. The cat food can be sold as it is for $9.55 per bag or be processed further into Premium Green and Green Deluxe at an additional $2,500 cost. The additional processing will yield 10,000 bags of Premium Green and 3,500 bags of Green Deluxe, which can be sold for $8.55 and $6.55 per bag, respectively. If Green Health is processed further into Premium Green and Green Deluxe, compute the total gross profit?
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