Marsden manufactures a cat food product called special

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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 $2.20 and total fixed costs are $10,000. The cat food can be sold as it is for $9.45 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $2,400 cost. The additional processing will yield 10,000 bags of Prime Cat Food and 3,400 bags of Feline Surprise, which can be sold for $8.45 and $6.45 per bag, respectively. If Special Export is processed further into Prime Cat Food and Feline Surprise, the total gross profit would be:

Reference no: EM13609369

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