Product J19 is produced for $3.48 per gallon. Product J19 can be sold without additional processing...
Product J19 is produced for $3.48 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 $0.46 per gallon. Product R33 can be sold for $4.56 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). If required, round your answers to the nearest whole dollar.
| Differential Analysis | |||
| Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) | |||
| April 30 | |||
| Sell Product J19 (Alternative 1) | Process Further into Product R33 (Alternative 2) | Differential Effect on Income (Alternative 2) | |
| Revenues, per unit | $ | $ | $ |
| Costs, per unit | |||
| Income (loss), per unit | $ | $ | $ |
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