1. Alia Co. can further process Product X to produce Product Y. Product X is currently selling for $20 per pound and costs $15 per pound to produce. Product Y would sell for $30 per pound and would require an additional cost of $8 per pound to produce. What is the differential cost of producing Product Y?

a. $23 per pound

b. $15 per pound

c. $8 per pound

d. $5 per pound

2. Neither Co. can further process Product J to produce Product D. Product J is currently selling for $12 per pound and costs $9 per pound to produce. Product D would sell for $20 per pound and would require an additional cost of $5 per pound to produce. What is the differential revenue of producing Product D?
A. $9 per pound
B. $14 per pound
C. $8 per pound
D. $ 20 per pound

Answer rating: 100% (QA)

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