Alia Co. can further process Product X to produce Product Y. Product X is currently selling for
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Question:
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
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