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A refiner has on hand 25,596 gallons of fuel oil. He must decide whether to sell it as fuel oil or crack it into

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A refiner has on hand 25,596 gallons of fuel oil. He must decide whether to sell it as fuel oil or crack it into gasoline and residual fuel. The following facts are available. Current Prices Fuel Oil PO.65 gallon Gasoline PO.83 / gallon Cracking Analysis Budget Differential cost = P0.1 per input gallon Cracking Yield = 75% gasoline, 15% residual fuel oil, the rest are loss What is the profit if the choice of company is to process further? Next

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