Dec 2013

Suppose we have 1200 kg of L. If could be sold immediately for 1200 x 5.60 = $6720 Alternatively we could spend extra and process, however 5% of the 1200 would be lost, and so only 1140 kg are processed at sold. So the net revenue would be1140 x (6.70 - 0.50) = $7068 So it is worth processing L. Same approach for the other two.

You are welcome :-)