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

I need help on the Excel Portion of this question VTK CorporationWithout Processing Production in excess(in barrel) 10000 Spot Price/Barrel $59.83 Extra Production

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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