Sell or Process Further

Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D

costs $12 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F. Product

F can be sold immediately for $12 per liter or processed further into Product G at an additional cost of

$10 per liter. Product G can then be sold for $26 per liter.

Required

Determine whether Product F should be sold or processed further into Product G.