Question: Product T is produced for $3.20 per pound, including a $0.20 per pound fixed cost. Product T can be sold without additional processing for $4.10
Product T is produced for $3.20 per pound, including a $0.20 per pound fixed cost. Product T can be sold without additional processing for $4.10 per pound, or processed further into Product U at an additional cost of $0.50 per pound, including a $0.12 per pound fixed cost. Product U can be sold for $4.45 per pound. Provide a differential analysis for further processing into Product U.
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