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Product 1 is produced for $11 per gallon. Product 1 can be sold without additional processing for $18 per gallon, or processed further into Product

Product 1 is produced for $11 per gallon. Product 1 can be sold without additional processing for $18 per gallon, or processed further into Product 2 for an additional cost of $7 per gallon. Product 2 can be sold for $25 per gallon. Using differential analysis, decide whether or not the company should process Product 1 further to Product 2 or sell Product 1, AND what is the additional value, per unit, of the alternatives.

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