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A chemical company spent $531,000.00 to produce 152,000 gallons of a chemical that can be sold for $5.20 per gallon. This chemical can be further
A chemical company spent $531,000.00 to produce 152,000 gallons of a chemical that can be sold for $5.20 per gallon. This chemical can be further processed into a weed killer that can be sold for $7.20 per gallon. It will cost $250,000.00 to process the chemical into the weed killer. Which of the following is true? A. To maximize operating income, the company should continue to sell the chemical as is. B. If the company decides to process further, it will increase operating income by $313,400.00. C. If the company decides to process further, it will decrease operating income by $1,094,400.00. D. If the company decides to process further, it will increase operating income by $54,000.00. O
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