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National Chemical Company manufactures a chemical compound that is sold for $52 per gallon. A...

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Accounting

National Chemical Company manufactures a chemical compound that is sold for $52 per gallon. A new variant of the chemical has been discovered, and if the basic compound were processed into the new variant, the selling price would be $78 per gallon. National expects the market for the new compound variant to be 8,100 gallons initially and determines that processing costs to refine the basic compound into the new variant would be $153,900.

Required:

  1. What would be the effect on total profit if National produces the new compound variant?
  2. Should National produce the new compound variant?
imageimage Complete this question by entering your answers in the tabs below. What would be the effect on total profit if National produces the new compound variant? National produces the new compound, profit will by Complete this question by entering your answers in the tabs below. Should National produce the new compound variant? Should National produce the new compound variant
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