Process or Sell

Product T is produced for $3.44 per pound. Product T can be sold without additional processing for $4.2 per pound or processed further into Product U at an additional cost of $0.42 per pound. Product U can be sold for $4.36 per pound.

Prepare a differential analysis dated November 15 on whether to sell T (Alternative 1) or process further into U (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 T (Alt. 1) or Process Further into Product U (Alt. 2)
November 15
	Sell Product T (Alternative 1)	Process Further into Product U (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues, per pound	$	$	$
Costs, per pound
Income (Loss), per pound	$	$	$

Should Product T be sold (Alternative 1) or processed further into Product U (Alternative 2)?