Process or Sell Product Tango is produced for $3.56 per gallon. Product Tango...

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Accounting

Process or Sell
Product Tango is produced for $3.56 per gallon. Product Tango can be sold without additional processing for $4.04 per gallon, or processed further into Product Zulu at an additional cost of $0.47 per gallon. Product Zulu can be sold for $4.34 per gallon.
Question Content Area
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
Sell Product Tango (Alt.1) or Process Further into Product Zulu (Alt.2)
October 3
Line Item Description Sell
Product Tango
(Alternative 1) Process
Further into
Product Zulu
(Alternative 2) Differential
Effects
(Alternative 2)
Revenues, per unit $Revenues, per unit
$Revenues, per unit
$Revenues, per unit
Costs, per unit Costs, per unit
Costs, per unit
Costs, per unit
Profit (loss), per unit $Profit (loss), per unit
$Profit (loss), per unit
$Profit (loss), per unit
Question Content Area
b. Should Product Tango be sold (Alternative 1) or processed further into Product Zulu (Alternative 2)?

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