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