Question: Product X is produced for $24 per pound including a $9 per pound fixed cost. Product X can be sold without additional processing for $30
Product X is produced for $24 per pound including a $9 per pound fixed cost. Product X can be sold without additional processing for $30 per pound, or processed further into Product Y at an additional cost of $5 per pound, including a $1.50 per pound fixed cost. Product Y can be sold for $33 per pound. Provide a differential analysis for further processing into Product Y.
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