Process or Sell

Product A is produced for $3.50 per pound. Product A can be sold without additional processing for $4.16 per pound or processed further into Product B at an additional cost of $0.37 per pound. Product B can be sold for $4.5 per pound.

Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2)
November 15
	Sell Product A (Alternative 1)	Process Further into Product B (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues, per unit	$________	$_______	$________
Costs, per unit	______	_______	______
Income (Loss), per unit	$_______	$_______	$_________

Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)?