Special export further into prime and feline surprise

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Reference no: EM13749825

Marsden manufactures a cat food product called Special Export. Marsden currently has 5,000 bags of Special Export on hand. The variable production costs per bag are $1.9 and total fixed costs are $5,000. The cat food can be sold as it is for $9.1 per bag or be processed further into Prime Cat Food and Feline Surprise at an additional $2,100 cost. The additional processing will yield 5,000 bags of Prime Cat Food and 3,150 bags of Feline Surprise, which can be sold for $8.1 and $6.1 per bag, respectively.

The net advantage (incremental income) of processing Special Export further into Prime and Feline Surprise would be:

Reference no: EM13749825

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Special export further into prime and feline surprise : Marsden manufactures a cat food product called Special Export. Marsden currently has 5,000 bags of Special Export on hand. The variable production costs per bag are $1.9 and total fixed costs are $5,000. The cat food can be sold as it is for $9.1 per..

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