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Batch size 5,400 gallons Cost of producing kerosene $2,900 per batch Selling price $2.90 per gallon The kerosene can be processed further to yield gasoline

Batch size 5,400 gallons Cost of producing kerosene $2,900 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 $840 per batch Selling price $4.40 per gallon.


What is the amount of differential income from further processing the gasoline per batch?

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