Unified Chemical Company has a joint pro- duction process that converts Zeta into two chemicals: Alpha and Beta. The company purchases Zeta for $12 per pound and incurs a cost of $30 per pound to process it into Alpha and Beta. For every 10 pounds of Zeta, the company can produce 8 pounds of Alpha and 2 pounds of Beta. The selling price for Alpha and Beta are $76.50 and $144.00, respectively.

Unified Chemical generally processes Alpha and Beta further in separable processes to produce more refined products. Alpha is processed separately into Alphalite at a cost of $25.05 per pound. Beta is processed separately into Betalite at a cost of $112.80 per pound. Alphalite and Betalite sell for $105 and $285 per pound, respectively. In the most recent month, Unified Chemical purchased 15,000 pounds of Zeta. The company had no beginning or ending inventory of Zeta.

Required: 1. Unified Chemical is considering an opportunity to process Betalite further into a new product called ultra-betalite. The seperable processing will cost $85 per pound and expects an additional $15 per pound packaging cost for ultra-betalite. The expected selling price would be $360 per pound. Should Unified Chemical sell Betalite or Ultra-Betalite? What selling price for Ultra-betalite would make unified chemical indifferent between selling Betalite or Ultra-betalite?