Mizzou Mining Company mines an iron ore called Alpha. During the month of December, 412,000 tons of Alpha were mined and processed at a cost of $748,500. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each product can be sold as is or processed into the refined products Super Delta and Precision Pi. Selling prices for these products are:

	Delta	Super Delta	Pi	Precision Pi
Selling price	$9/ton	$15/ton	$14/ton	$24/ton

Processing costs to refine Delta into Super Delta are $2,472,000: processing costs to refine Pi into Precision Pi are $494,400.

Requirement 1:

(a)	What would be the incremental profit or loss per unit if Delta is refined into Super Delta? (Input the amount as positive value. Omit the "$" sign in your response.)

Incremental (Click to select) profit loss

$

(b)	What would be the incremental profit or loss per unit if Pi is refined into Precision Pi? (Omit the "$" sign in your response.)

Incremental (Click to select) profit loss

$

Requirement 2:

(a)	Should Delta be sold as is or refined into Super Delta?
	(Click to select) Delta should be sold as is. Delta should be processed further and sold as Super Delta.

(b)	Should Pi be sold as is or refined into Precision Pi?
	(Click to select) Pi should be processed further and sold as Precision Pi. Pi should be sold as is.

Requirement 3:

Identify any costs in the problem that are not relevant to this decision.

(Click to select) Processing costs to refine Delta into Super Delta are not relevant. The $748,500 cost incurred to produce the Alpha ore is not relevant. Processing costs to refine Pi into Precision Pi are $494,400 not relevant.

Requirement 4:

What is the maximum profit that Mizzou Mining Company can expect to earn from the production of the 412,000 tons of Alpha? (Omit the "$" sign in your response.)

Maximum profit

$