XYZ Exterminators produces chemicals for the bug spray indus…
XYZ Exterminators produces chemicals for the bug spray industry. The company has 3,000 gallons of Chemical C that can be sold for $2,500 or can be processed further into 2,400 gallons of Chemical D (600 gallons would be lost in the conversion process). The sales value of Chemical D is $4.50 per gallon, and the additional processing cost is $8,100. If the company decides to process Chemical C into Chemical D, what would be the effect on profitability?
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