Question: Process or Sell Product J19 is produced for $3.38 per gallon. Product J19 can be sold without additional processing for $4.22 per gallon, or processed

Process or Sell

Product J19 is produced for $3.38 per gallon. Product J19 can be sold without additional processing for $4.22 per gallon, or processed further into Product R33 at an additional cost of $0.48 per gallon. Product R33 can be sold for $4.56 per gallon.

a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). If required, round your answers to the nearest whole dollar.

Differential Analysis
Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2)
April 30
Sell Product J19 (Alternative 1) Process Further into Product R33 (Alternative 2) Differential Effect on Income (Alternative 2)
Revenues, per unit $fill in the blank 988089fd9fc3fec_1 $fill in the blank 988089fd9fc3fec_2 $fill in the blank 988089fd9fc3fec_3
Costs, per unit fill in the blank 988089fd9fc3fec_4 fill in the blank 988089fd9fc3fec_5 fill in the blank 988089fd9fc3fec_6
Income (loss), per unit $fill in the blank 988089fd9fc3fec_7 $fill in the blank 988089fd9fc3fec_8 $fill in the blank 988089fd9fc3fec_9

b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?

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