Maxim has already spent $28,100 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand that can be sold for $90,320. Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,025. If Maxim processes further, the Premium Green can be sold for $98,350. The incremental income to process further is: Multiple Choice $3,005 $2,005 $8,030. $(8,030) $2.005)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 2PA: Syntech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...
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Maxim has already spent $28,100 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on
hand that can be sold for $90,320. Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,025. If
Maxim processes further, the Premium Green can be sold for $98,350. The incremental income to process further is:
Multiple Choice
$3,005
$2,005
$8,030.
$(8,030)
$2.005)
Transcribed Image Text:Maxim has already spent $28,100 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand that can be sold for $90,320. Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,025. If Maxim processes further, the Premium Green can be sold for $98,350. The incremental income to process further is: Multiple Choice $3,005 $2,005 $8,030. $(8,030) $2.005)
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