Question: Product L is produced for $1.85 per gallon including a $0.90 per gallon fixed cost. Product L can be sold without additional processing for $2.20

Product L is produced for $1.85 per gallon including a $0.90 per gallon fixed cost. Product L can be sold without additional processing for $2.20 per gallon, or processed further into Product P at an additional cost of $0.80 per gallon, including a $0.30 per gallon fixed cost. Product P can be sold for $2.80 per gallon. Provide a differential analysis for further processing into Product P.

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