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Process or Sell Product 319 is produced for $3.30 per gallon. Product 319 can be sold without additional processing for $4.06 per gallon, or processed
Process or Sell Product 319 is produced for $3.30 per gallon. Product 319 can be sold without additional processing for $4.06 per gallon, or processed further into Product R33 at an additional cost of $0.36 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 319 (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 Process Differential Product 319 Further into Product R33 Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit Feedback Check My Work For both products, subtract the unit costs from the price. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. Should Product 319 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)? Sell Product 319 Feedback Check My Work Compare the differential revenues and differential costs of selling vs. processing further. Which one has the greatest positive differential effect on income
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