Product J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.10 per gallon, or processed further into Product R33 at an additional cost of $0.48 per gallon. Product R33 can be sold for $4.54 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Process Differential Effects Sell Further into Product J19 Product R33 (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?

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Chapter1: Financial Statements And Business Decisions
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**Process or Sell**

Product J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.10 per gallon, or processed further into Product R33 at an additional cost of $0.48 per gallon. Product R33 can be sold for $4.54 per gallon.

a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss.

---

**Differential Analysis**  
Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2)

|                         | Sell Product J19 (Alternative 1) | Process Further into Product R33 (Alternative 2) | Differential Effects (Alternative 2) |
|-------------------------|----------------------------------|-------------------------------------------------|-------------------------------------|
| **Revenues, per unit**  |                                  |                                                 |                                     |
| **Costs, per unit**     |                                  |                                                 |                                     |
| **Profit (loss), per unit** |                              |                                                 |                                     |

b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?

---

**Explanation of Diagram:**

The table in the diagram is set up for a differential analysis, comparing two alternatives:

- **Sell Product J19 (Alternative 1):** The first column is dedicated to recording the data for selling Product J19 directly.
- **Process Further into Product R33 (Alternative 2):** The second column is for recording the data when further processing Product J19 into R33.
- **Differential Effects (Alternative 2):** The third column calculates the differences in effects between the two alternatives.

Each row in the table is intended for input on revenues, costs, and profit (or loss) per unit for each alternative. The purpose is to aid in decision-making by comparing which option yields a greater profit or smaller loss.
Transcribed Image Text:**Process or Sell** Product J19 is produced for $3.42 per gallon. Product J19 can be sold without additional processing for $4.10 per gallon, or processed further into Product R33 at an additional cost of $0.48 per gallon. Product R33 can be sold for $4.54 per gallon. a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. --- **Differential Analysis** Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) | | Sell Product J19 (Alternative 1) | Process Further into Product R33 (Alternative 2) | Differential Effects (Alternative 2) | |-------------------------|----------------------------------|-------------------------------------------------|-------------------------------------| | **Revenues, per unit** | | | | | **Costs, per unit** | | | | | **Profit (loss), per unit** | | | | b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)? --- **Explanation of Diagram:** The table in the diagram is set up for a differential analysis, comparing two alternatives: - **Sell Product J19 (Alternative 1):** The first column is dedicated to recording the data for selling Product J19 directly. - **Process Further into Product R33 (Alternative 2):** The second column is for recording the data when further processing Product J19 into R33. - **Differential Effects (Alternative 2):** The third column calculates the differences in effects between the two alternatives. Each row in the table is intended for input on revenues, costs, and profit (or loss) per unit for each alternative. The purpose is to aid in decision-making by comparing which option yields a greater profit or smaller loss.
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