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What is financial advantage to dutch of processing chemgo

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Reference no: EM132793135

Dutch, Inc. uses a joint process that costs $125,000 and results in two products; 4,000 gallons of Chemgo and 2,000 gallons of GoAssist. The Chemgo can be sold as is for $80 per gallon or processed further into Super Chemgo for an additional processing cost of $50,000. The Super Chemgo can be sold for $100 per gallon.

Problem 1: What is the financial advantage (disadvantage) to Dutch of processing Chemgo into Super Chemgo?

a.($95,000)
b.$80,000
c.$30,000
d.($225,000)

Reference no: EM132793135

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