Question: I need help on the Excel Portion of this question VTK Corporation Without Processing Production in excess(in barrel) 10000 Spot Price/Barrel $59.83 Extra Production Revenue
I need help on the Excel Portion of this question


| VTK Corporation | ||||
| Without Processing | ||||
| Production in excess(in barrel) | 10000 | |||
| Spot Price/Barrel | $59.83 | |||
| Extra Production Revenue | $598,300.00 | |||
| Refining | ||||
| Quantity(Gallon) | Price per Gallon | Revenue | ||
| Butane | 44000 | $1.40 | $61,600.00 | |
| Naphtalene | 198000 | $1.38 | $273,240.00 | |
| Kerosene | 60000 | $3.99 | $239,400.00 | |
| Total revenue by refining | $574,240.00 | |||
| Cost of Refining | $5,500 | |||
| Profit | $568,740.00 | |||
| Note : Since heavy gas oil does not have current market so there is no need to run distiller | ||||
| Quantity(Gallon) | Price Per Gallon | |||
| Further Processing | ||||
| If only butane is processed | ||||
| Propane | 42800 | $1.51 | $64,628.00 | |
| Extra revenue due to processing | $3,028.00 | |||
| Extra cost | $2,000 | |||
| Extra Profit | $1,028.00 | |||
| profit if only butane is processed | $569,768.00 | |||
| if butane as well as napthalene is further processed | ||||
| Gasoline | 193000 | $1.66 | $320,380.00 | |
| Extra revenue by Gasoline | $47,140.00 | |||
| Extra Cost in generating Gasoline | $1,900 | |||
| Extra Profit due to gasoline conversion | $45,240.00 | |||
| Extra Profit due to propane conversion | $1,028.00 | |||
| Profit if butane as well as napthalene is processed further | $615,008.00 | |||
| Decision : Further processing is better | ||||
Sell vs. Process Further - Butane/Propane Sell Make butane propane 61,600 64,628 -2,000 61,600 62,628 Revenues Expenses Net income change in NI 3,028 -2,000 1,028
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