Product A is produced for $3.40 per pound. Product A can be sold without additional processing for $4.28 per pound or processed further into Product B at an additional cost of $0.42 per pound. Product B can be sold for $4.34 per pound. 

Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

                   

Differential Analysis
Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2)
November 15
	Sell Product A  (Alternative 1)	Process Further  into Product  B (Alternative 2)	Differential Effect  on Income  (Alternative 2)
Revenues, per unit	$	$	$
Costs, per unit
Income (Loss), per unit	$	$	$

 

Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)?

Answer rating: 100% (QA)

Differential Analysis Sell Product A Alt 1 or Process Fur... View the full answer