Processing costs to refine the basic compound

Reference no: EM13130467

Sell or process further? National Chemical Company manufactures a chemical compound that is sold for $58.00 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 $72.00 per gallon. National expects the market for the new compound variant to be 57,000 gallons initially and determines that processing costs to refine the basic compound into the variant would be $72,800.

Required:

Should National produce the new compound variant? Explain your answer.

Reference no: EM13130467

Questions Cloud

Determine probability that single light bulb lasts more : Determine the probability that a single light bulb lasts over 120 hours. (d) Could you use the CLT to approximate the distribution of the total lifetime of these bulbs?

Calculate the target cost of the product : A manufacturer is developing a new board game geared towards children. To be competitive with other board games, the company has set a target price of $25 for the game. The company likes to maintain a target profit equal to 35 percent of the produ..

Determine what is your selling price : Imagine you are President of a company (the company is your choice). Tell us about the product you are selling and which of the four pricing strategies you would use to determine your selling price?

Find the optimal number of facilities : If the optimal number of facilities that minimizes the total logistical cost for a certain supply chain is five, what would be a logical justification for decision makers of this supply chain to build more than five facilities?

Processing costs to refine the basic compound : National expects the market for the new compound variant to be 57,000 gallons initially and determines that processing costs to refine the basic compound into the variant would be $72,800.

What is the ph of a solution : What is the pH of a solution in which 323 mL of HCl(g), measured at 26.8 degrees Celsius and 1.02 atm, is dissolved in 1.5 L of aqueous solution?

What is the decision rule for both grocery items selected : The price of each selected item was checked at each of the three chains on the sames day. Use 0.05 level of significance. What is the decision rule for both.

Flexible budgeting problem : The cost formula for the maintenance department of Rainbow, Ltd., is $12,600 per month plus $4.50 per machine hour used by the production department.

Calculate the energy change for the reaction : Calculate the energy change for the reaction K(g) + I(g) → K+(g) + I- (g) given the following ionization energy (IE) and electron affinity (EA) values. IE K = 419 kJ/mol, IE I = 1010 kJ/mol; EA K = 48 kJ/mol. EA I= 295 kJ/mol

User Account

All Pages