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Sell or process further. Martin Products, processor of peanuts, has on hand 50,000 lbs. of peanut hulls. The division producing fertilizer is currently operating at
Sell or process further. Martin Products, processor of peanuts, has on hand 50,000 lbs. of peanut hulls. The division producing fertilizer is currently operating at 80% of capacity, which is more than adequate to process the hulls into fertilizer. Current prices for hulls are 544 perton: for fertilizer. 55 per 50-lb. bag. The differential cost is $.05 perib.of finished product. Processing yields 90% fertilizer and 10% loss from the hulls out into the system. Additional materials weighing 5.000 lbs are to be added during processing Required: Prepare an analysis indicating whether Martin should sell or process further
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