Capacity ughput (liters) %00 1,000,000 Shutdown %08 800,000 %09 0. 000 00 Operating Costs: cking department ating department vent dewaxing department vent extraction department ering department P1,900,000 P2,300,000 400,000 750,000 560,000 840,000 P700,000 P1,600,000 308,000 560,000 380,000 744,000 000'091 200,000 140,000 194,000 670,000 480,000 800,000 QUIRED: In each of the following cases, indicate in one short sentence the appropriate management decision. Treat the cases independently. Show the computations necessary to justify your answers. 200,000 liters of fuel is on hand. The refinery must decide whether it is more profitable to sell it as fuel oil, or to reprocess it further and crack it into gasoline. The following additional facts are available: ond 10% loss
Capacity ughput (liters) %00 1,000,000 Shutdown %08 800,000 %09 0. 000 00 Operating Costs: cking department ating department vent dewaxing department vent extraction department ering department P1,900,000 P2,300,000 400,000 750,000 560,000 840,000 P700,000 P1,600,000 308,000 560,000 380,000 744,000 000'091 200,000 140,000 194,000 670,000 480,000 800,000 QUIRED: In each of the following cases, indicate in one short sentence the appropriate management decision. Treat the cases independently. Show the computations necessary to justify your answers. 200,000 liters of fuel is on hand. The refinery must decide whether it is more profitable to sell it as fuel oil, or to reprocess it further and crack it into gasoline. The following additional facts are available: ond 10% loss
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter13: Lean Manufacturing And Activity Analysis
Section: Chapter Questions
Problem 3BE
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