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 $2,000 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 net advantage (incremental income)of processing Green Health further into Premium Green and Green Deluxe would be:
A)$98,000.
B)$96,000.
C)$8,000.
D)$6,000.
E)$2,000.

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The Answer of 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 $2,000 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 net advantage (incremental income)of processing Green Health further into Premium Green and Green Deluxe would be:
A)$98,000.
B)$96,000.
C)$8,000.
D)$6,000.
E)$2,000.

Maxim Manufactures a Hamster Food Product Called Green Health