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Butry Company Manufactures Veterinary Products

question 107

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Butry Company manufactures veterinary products. One joint process involves refining a chemical (dactylyte) into two chemicals: dac and tyl. One batch of 5,000 L of dactylyte can be converted to 2,000 L of dac and 3,000 L of tyl at a total joint processing cost of $12,000. At the split-off point, dac can be sold for $3 per litre and tyl can be sold for $4 per litre. Butry has just learned of a new process to convert dac into prodac. The new process costs $4,000 and yields 1,700 L of prodac for every 2,000 L of dac. Prodac sells for $5 per litre.
-Refer to the Figure.What is Butry's profit from refining one batch of dactylyte if both dac and tyl are sold at the split-off point?

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Definitions:

Principled Leadership

Leading based on defined moral principles, often characterized by integrity, honesty, and ethical decision-making.

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A procedure or task that involves several stages or phases to complete.

Self-Management Responsibilities

The obligations or duties an individual has towards managing their own behavior and well-being.

Cross-Functional Teams

Groups composed of members from different departments or areas of expertise working together towards a common goal, fostering collaboration and innovation.

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