=+PR 25-3B Differential analysis report for sales promotion proposal obj. 1

✔ 1. Moisturizer differential income,

$177,000 The management of Caribbean Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $1.90 per pound, and raw sugar can be sold without further processing for $1.10 per pound. Raw sugar is produced in batches of 27,000 pounds by processing 90,000 pounds of sugar cane, which costs $0.25 per pound. Refined sugar will require additional processing costs of

$0.35 per pound of raw sugar, and 1.2 pounds of raw sugar will produce 1 pound of refined sugar.

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