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Solve the net advantage for product f

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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 $12 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 $12 per liter or processed further into Product G at an additional cost of $10 per liter. Product G can then be sold for $26 per liter.

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

Question 1: Calculate the net advantage (disadvantage) of further processing. Use a negative sign to indicate a net disadvantage (if applicable).

Reference no: EM132524010

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