Process or Sell

Product Tango is produced for $$24$ per gallon. Product Tango can be sold without additional processing for $$40$ per gallon, or processed further into Product Zulu at an additional cost of $$9$ per gallon. Product Zulu can be sold for $$55$ per gallon.

a$.$ Prepare a differential analysis dated October $3$ on whether to sell Product Tango $($Alternative $1)$ or process further into Product Zulu $($Alternative $2).$ If required, use a minus sign to indicate a loss.

Differential Analysis

Sell Product Tango $($Alt$.1)$ or Process Further into Product

Zulu $($Alt$.2)$

October $3$

$\backslash$table$[[$October $3],[$Line Item Description,$\backslash$table$[[$Sell$],[$Product Tango$],[($Alternative $1)]],\backslash$table$[[$Process$],[$Further into$],[$Product Zulu$],[($Alternative $2)]],\backslash$table$[[$Differential$],[$Effects$],[($Alternative $2)]]],[$Revenues$,$ per unit,$$,$$$,$$