E17-24. Sell or Process Further

Ecolab produces cleaning and sanitizing chemicals for commercial markets. Assume the

processes raw material D into joint products E and F. Raw material D costs $8 per liter. It costs $15)

to convert 100 liters of D into 60 liters of E and 40 liters of F. Product F can be sold immediately for

$40 per liter or processed further into Product G at an additional cost of $12 per liter. Product G can

then be sold for $55 per liter.

Determine whether Product F should be sold or processed further into Product G. P

E17-25. Limited Resour