Should M have been processed further in

April

and sold as Super M? Show your computations.

Data Table $ 1,600,000 Joint processing cost Gallons produced and sold L 4,000,000 M 2,500,000 Print Done Suppose that in April the 2,500,000 gallons of M could have been processed further into Super M at an additional cost of $165,000. The Super M output would be sold for $0.36 per gallon. Product L would be sold at split-off in any event. An Exxon petrochemical factory produces two products, Land M, as a result of a particular joint process. Both products are sold to manufacturers as ingredients for assorted chemical products. Product L sells at split-off for $0.25 per gallon; M sells for $0.30 per gallon. Data for April follow: (Click the icon to view the data.) Requirement 1. Should M have been processed further in April and sold as Super M? Show your computations. Calculate the difference between selling at split-off as M and processing further as Super Min April. (Leave unused cells blank. Use parentheses or a minus sign for a negative income effect.) Sell at split-off Process further as M as Super M Difference Less: Income effects for April