Question

Process or Sell Product J19 is produced for $3.40 per gallon. Product J19 can be sold without additional processing for $4.29 per gallon, or processed further into Product R33 at an additional cost of $0.37 per gallon. Product R33 can be sold for $4.48 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Sell Differential Further into Product 319 Effects Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ Costs, per unit Profit (loss), per unit b. Should Product 319 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?

Answer 1

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Any: Differential Analysis Sell Produd J19 Calu. 1) or process further into product 233 (Alt 2) April 30 Sell Process further Differential Product J19/ into product R3d effect Alternative t) (Alternative 2) I (Alternative 2) | Revenues, per unit l $4.99 $4.48 1 $0.19 Costs. Per Unit 1-$3.40 1-$3.77 -$0.37 I Brofit (loss), per unit $.89 __ $ 0.71 - $ 0.18 (6) processed further into should prochet J 19 be sold (Alt. d) or Product R33 (A4.2) ? Sell product Jg Ang