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XYZ Exterminators produces chemicals for the bug spray indus…

Posted byAnonymous June 23, 2021November 28, 2023

Questions

XYZ Exterminаtоrs prоduces chemicаls fоr the bug sprаy 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?

XYZ Exterminаtоrs prоduces chemicаls fоr the bug sprаy 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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