Differential Analysis for Further Processing aluminum.

Required: to indicate a loss.

$2.$ International Aluminum Co$.$ Should $$ process aluminum ingot further, rather than sell aluminum ingot because profits would be increased $.$The management of International Aluminum Co$.$ is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $$2,500$ per ton, and ingot can be sold without further processing for $$1,250$ per ton. Ingot is produced in batches of $84$ tons by smelting $540$ tons of bauxite, which costs $$100$ per ton of bauxite. Rolled aluminum will require additional processing costs of $$640$ per ton of ingot, and $1\mathrm{.}25$ tons of ingot will produce $1$ ton of rolled aluminum.