16

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.30 per pound and costs $16.35 per pound to produce. Product D would sell for $37.40 per pound and would require an additional cost of $8.55 per pound to produce.

What is the differential cost of producing Product D?

a. $8.55 per pound

b. $6.84 per pound

c. $10.26 per pound

d. $5.13 per pound