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(Solved): Process or Sell Product Tango is produced for $3.56 per gallon. Product Tango can be sold without a ...
Process or Sell Product Tango is produced for $3.56 per gallon. Product Tango can be sold without additional processing for $4.24 per gallon, or processed further into Product Zulu at an additional cost of $0.41 per gallon. Product Zulu can be sold for $4.30 per gallon. a. Prepare a differential analysis dated October 3 on whether to sell Product Tango (Alternative 1 ) or process further into Product Zulu (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Feedback ? Check My Work For both products, subtract the unit costs from the price. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. b. Should Product Tango be sold (Alternative 1) or processed further into Product Zulu (Alternative 2)?