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Assume that a business produces kerosene as follows: Batch size 5,400 gallons Cost of producing kerosene $2,500 per batch Selling price $2.90 per gallon The

Assume that a business produces kerosene as follows: Batch size 5,400 gallons Cost of producing kerosene $2,500 per batch Selling price $2.90 per gallon The kerosene can be processed further to yield gasoline as follows: Initial batch size 5,400 gallons Less evaporation (25%) (1,350) (5,400 × 25%) Output batch size 4,050 gallons Additional processing costs $800 per batch Selling price $4.70 per gallon What is the amount of differential income from further processing the gasoline per batch?

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