joint product pricing

Project Description:

1. joint product pricing. pee-wee petroleum, inc., operates oil and gas producing wells in the overthrust belt region. on average, for each barrel of oil pumped to the surface, one thousand cubic feet of natural gas is also recovered. therefore, the company views oil and gas as joint products where each unit of production involves 1 bbl: 1 mcf. marginal costs are $75 per unit of production.
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Project Stats:

Price Type: Negotiable

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