Process or Sell

Product J19 is produced for $3.30 per gallon. Product J19 can be sold without additional processing for $4.15 per gallon, or processed further into Product R33 at an additional cost of $0.38 per gallon. Product R33 can be sold for $4.48 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 bcdbd5ffbf8ffa4_1	$fill in the blank bcdbd5ffbf8ffa4_2	$fill in the blank bcdbd5ffbf8ffa4_3
Costs, per unit	fill in the blank bcdbd5ffbf8ffa4_4	fill in the blank bcdbd5ffbf8ffa4_5	fill in the blank bcdbd5ffbf8ffa4_6
Profit (loss), per unit	$fill in the blank bcdbd5ffbf8ffa4_7	$fill in the blank bcdbd5ffbf8ffa4_8	$fill in the blank bcdbd5ffbf8ffa4_9

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