Process or Sell

Product J19 is produced for $3.30 per gallon. Product J19 can be sold without additional processing for $4.14 per gallon, or processed further into Product R33 at an additional cost of $0.44 per gallon. Product R33 can be sold for $4.36 per gallon.

Question Content Area

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 28fd30faefa9ffc_1	$fill in the blank 28fd30faefa9ffc_2	$fill in the blank 28fd30faefa9ffc_3
Costs, per unit	fill in the blank 28fd30faefa9ffc_4	fill in the blank 28fd30faefa9ffc_5	fill in the blank 28fd30faefa9ffc_6
Profit (loss), per unit	$fill in the blank 28fd30faefa9ffc_7	$fill in the blank 28fd30faefa9ffc_8	$fill in the blank 28fd30faefa9ffc_9

Question Content Area

b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?

Sell Product J19Process further into Product R33