19 Jan SELL OR PROCESS FURTHERChemco Corporation buys thr
SELL OR PROCESS FURTHERChemco Corporation buys three chemicals that are processed to produce two popular ingredients for liquid cough syrups. The three chemicals are in liquid form. The purchased chemicals are blended for two to three hours and then heated for 15 minutes.he results of the process are two separate ingredients, Suppressant AB2 and Suppressant AB3. For every 2,200 gallons of chemicals used, 1,000 gallons of each suppressant are produced. The suppressants are sold to companies that process them into their final form. The selling prices are $25 per gallon for AB2 and $12 per gallon for AB3.The costs to produce 1,000 gallons of each chemical are as follows: Chemicals $11,000 Direct labor 9,000 Catalyst 3,600 Overhead 7,000The suppressants are bottled in 5-gallon plastic containers and shipped. The cost of each container is $1.65. The costs of shipping are $0.20 per container.Chemco Corporation could process Suppressant AB2 further by mixing it with inert powders and flavoring to form cough tablets. The tablets can be sold directly to retail drug stores as a generic brand. If this route is taken, the revenue received per case of tablets would be $8.50, with 10 cases produced by every gallon of Suppressant AB2. The costs of processing into tablets total $5.00 per gallon of AB2. Packaging costs $4.86 per case. Shipping costs $0.40 per case.Required:1. Should Chemco sell Suppressant AB2 at split-off, or should AB2 be processed and sold as tablets?2. If Chemco normally sells 360,000 gallons of AB2 per year, what will be the difference in profits if AB2 is processed further?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.