American Chemical Company manufactures a chemical compound that is sold for $52 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $83 per gallon. American expects the market for the new compound variant to be 8,000 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $160,000.

a. What would be the effect on total profit if America produces the new compound variant?

If America produces the new compound, profit will increase/decrease by ?

Answer rating: 100% (QA)

Selling price of new variant of chemical 83 Less ... View the full answer