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15.00 points Exercise 16-10 Sell or process further? LO 2, 3 ADP Mining Company mines an iron ore called Alpha. During the month of August,
15.00 points Exercise 16-10 Sell or process further? LO 2, 3 ADP Mining Company mines an iron ore called Alpha. During the month of August, 414,000 tons of Alpha were mined and processed at a cost of $749,500. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each product can be sold as is or processed into the refined products Super Delta and Precision Pi. Selling prices for these products are as follows: Delta $13 /ton Super Delta $17 Iton Pi 16 /ton Selling price $24 /ton Processing costs to refine Delta into Super Delta are $2,235,600; processing costs to refine Pi into Precision Pi are $993,600 Required: a-1. What would be the incremental profit or loss per unit if Delta is refined into Super Delta? (Loss amounts should be indicated with a minus sign.) Incremental Profit (Loss) a-2. What would be the incremental profit or loss per unit if Pi is refined into Precision Pi? Increm ental Profit (Loss)
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