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Determine whether product f should be sold or processed

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Sell or Process Further

Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F, product F can be sold immediately for $6 per liter or processed further into Product G at an additional cost of $5 per liter. Product G can then be sold for $13 per liter.

Required:

Determine whether product F should be sold or processed further into Product G.

Reference no: EM132443600

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