Jet Fuel (Continued) Murad has the opportunity to invest in a filtration system to increase the purity of the kerosene used in the jet fuel. This would enable a higher price from the buyers. Currently Murad is able to charge a 10% margin into the price using total cost + pricing (Assume your answer from Question 1 is the current price), but with this change she would be able to charge the 30% markup on the original total cost (Assume your answer from Question 1 is correct). This would take an investment of $10 million dollars for equipment lasting five years and an annual operating expense for the filters of $800,000. In addition, each liter of jet fuel needs a trace amount of stabilizer added that costs $0.50 per liter. Question 2. Perform an incremental analysis on switching to the filtration system assuming that the 10% margin price from Question 1 is the current status quo. Please examine the scenarios for barrels being $60 per barrel and $90 per barrel. Question 1 numbers: Crude Oil Desired Gasoline Cost Jet Fuel Cost Price Margin Markup per Liter per Liter Asphalt Cost per Liter $60 10% 10% $0.46 $0.69 $0.92 $60 10% 30% $0.55 $0.82 $1.09 $60 20% 10% $0.52 $0.78 $1.04 $60 20% 30% $0.63 $0.94 $1.25 $80 10% 10% $0.61 $0.92 $1.22 $80 10% 30% $0.73 $1.09 $1.45 $80 20% 10% $0.69 $1.04 $1.38 $80 20% 30% $0.83 $1.25 $1.66 $90 10% 10% $0.69 $1.04 $1.38 $90 10% 30% $0.83 $1.25 $1.66 $90 20% 10% $0.78 $1.17 $1.56 $90 20% 30% $0.94 $