Exercise $21\mathrm{.}11($Static$)$ Joint Processes: Sell or Process Further $($LO$21-1,$ LO$21-2,$ LO$21-3,$ LO$21-4)$

BloMorphs Corporation produces three products in a monthly Joint production process. During the first stage of the process liquids

and chemicals costing $$60,000$ are heated and three different compounds emerge: $3,000$ gallons of Molecue worth $$22$ per gallon

are created from the steam; $10,000$ gallons of Borphue worth $$15$ per gallon are dralned from the tank; and $1,000$ gallons of the tank

residue, labeled as Polygard, are sold as fertilizer for $$5\mathrm{.}50$ per gallon. Before Molecue is sold, it must be purified in another process

that costs $$10,000,$ and before the Polygard fertilizer is sold, it must be bottled at a price of $$1\mathrm{.}50$ per gallon.

Required:

a$.$ What is the profitability of the joint process?

b$.$ Is it profitable to process Molecue further if it can be sold at spitt$-$off for $$5$ per gallon?

c$.$ BloMorphs has an offer to sell Polygard bulk at the spit$-$off point without botting for $$3,500$ per month. What is the incremental

profit $($loss$)$ to BloMorphs if it accepts the offer?

Complete this question by entering your answers in the tabs below.

Required B

Is it profitable to process Molecue further if it can be sold at split$-$off for $$5$ per gallon?