Question
oduct J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.02 per gallon, or processed further into Product
oduct J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.02 per gallon, or processed further into Product R33 at an additional cost of $0.41 per gallon. Product R33 can be sold for $4.30 per gallon.
a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss.
Differential Analysis | |||
Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) | |||
April 30 | |||
Sell Product J19 (Alternative 1) | Process Further into Product R33 (Alternative 2) | Differential Effects (Alternative 2) | |
Revenues, per unit | $fill in the blank 532144072fc9fe8_1 | $fill in the blank 532144072fc9fe8_2 | $fill in the blank 532144072fc9fe8_3 |
Costs, per unit | fill in the blank 532144072fc9fe8_4 | fill in the blank 532144072fc9fe8_5 | fill in the blank 532144072fc9fe8_6 |
Profit (loss), per unit | $fill in the blank 532144072fc9fe8_7 | $fill in the blank 532144072fc9fe8_8 | $fill in the blank 532144072fc9fe8_9 |
b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
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