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What nitrato corp should

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Question 1: Nitrato Corp. produces a chemical, propanol, in large batches. each batch sells for 2000 and contains 1000 litres of propanol. Alternatively, the company could process Propenol further to produce another chemical, Hydroxa. Each batch of Propenol can produce 800 litres of Hydroxa at an additional cost of $1500. Hydroxa can be sold for $4.25 per litre. Nitrato Corp. should:

A. process futher, income will be higher by $1000

B. process futher, income will be higher by $300

C. None of those are correct

D. sell now, income will be higher by $300

E. sell now, income will be higher by $100

Reference no: EM132600432

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