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National Chemical Company manufactures a chemical compound that is sold for dollar54 per gallon. A new variant of the chemical has been discovered, and if

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National Chemical Company manufactures a chemical compound that is sold for dollar54 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be dollar84 per gallon. National expects the market for the new compound variant to be 8.900 gallons initially and determines that processing costs to refine the basic compound into the new variant would be dollar160,200. Required: What would be the effect on total profit if National produces the new compound variant? Should National produce the new compound variant? Yes No

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