Question: Is it profitable to process Molecue further if it can be sold at split-off for $8 per gallon? Is it profitable to process further? BioMorphs

 Is it profitable to process Molecue further if it can be

Is it profitable to process Molecue further if it can be sold at split-off for $8 per gallon?

Is it profitable to process further?

BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for $3,200 per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer?

BioMorphs Corporation produces three products in a monthly joint production process. During the first stage of the process liquids and chemicals costing $32,900 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 are drained from the tank; and 1,000 gallons of the tank residue, labeled as Polygard, are sold as fertilizer for $6.00 per gallon. Before Molecue is sold, it must be purified in another process that costs $11,000, and before the Polygard fertilizer is sold, it must be bottled at a price of $1.50 per gallon. a. What is the profitability of the joint process? b. Is it profitable to process Molecue further if it can be sold at split-off for $8 per gallon? c. BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for $3,200 per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the profitability of the joint process? Total profit

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