Question: Refer to Chapter 14 notes. This question relates to the Connecticut Chemical Company problem on sell or process further decisions. Modify the information provided in
Refer to Chapter 14 notes. This question relates to the Connecticut Chemical Company problem on sell or process further decisions. Modify the information provided in the latter part of the problem as follows: "RNA-2 is sold as is for $100 per hundred pounds. However, management has discovered that RNA-2 can be converted into two new products by adding 600,000 pounds of compound LST to the 400,000 pounds of RNA-2. This joint process would yield 500,000 pounds each of DMZ-3 and Pestrol, the two new products. The additional direct-material and related processing costs of this joint process would be $240,000. DMZ-3 and Pestrol would each be sold for $60 per 100 pounds." If Connecticut processes RNA-2 further instead of selling it as is, its weekly profit would A. increase by $20,000 B. decrease by $12,000 C. increase by $60,000 D. increase by $25,000 E. decrease by $40,000
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