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A company incurred costs of $8,000 in producing 1,000 gallons of Apex. Apex can be...

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Accounting

A company incurred costs of $8,000 in producing 1,000 gallons of Apex. Apex can be sold for $24 per gallon now or processed further at a cost of $14,000 and then sold for $40 per gallon. Which one of the following actions would be most advantageous to the company and what is the economic effect?

a.

Sell Apex now; the company would be $2,000 better off
b.

Process Apex further; the company would be $16,000 better off
c.

Sell Apex now; the company would be $10,000 better off.
d.

Process Apex further; the company would be $2,000 better off.

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