What is the expected net revenue if Vision Chemical decides to process the acetone further?
Last month, Vision Chemical spent $175,000 to refine 45,000 litres of acetone, which can be sold as is for $5.00 per litre. Vision has the option to process the acetone further to yield a total of 38,000 litres of lacquer thinner that can be sold for $3.00 per half-litre. The additional
| A. |
$200,910 |
|
| B. |
$86,910 |
|
| C. |
$25,910 |
|
| D. |
$90,060 |
|
| E. |
$204,060 |
Given information is:
Last month, Vision Chemical spent $175,000 to refine 45,000 litres of acetone, which can be sold as is for $5.00 per litre. Vision has the option to process the acetone further to yield a total of 38,000 litres of lacquer thinner that can be sold for $3.00 per half-litre. The additional processing cost is 45 cents per litre of acetone. Also, Vision must pay shipping of 10 cents per litre of lacquer thinner and additional packaging costs of 8 cents per litre for the lacquer thinner.
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