Question
A) Product A is produced for $3.46 per pound. Product A can be sold without additional processing for $4.14 per pound or processed further into
A) Product A is produced for $3.46 per pound. Product A can be sold without additional processing for $4.14 per pound or processed further into Product B at an additional cost of $0.41 per pound. Product B can be sold for $4.3 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.
B) Product D is normally sold for $49 per unit. A special price of $32 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 16% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order. Prepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". 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 Process Further Differential Effect into Product on Income (Alternative 1) B (Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Income (Loss), per unit Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Reject Order Accept Order (Alternative 1) (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit | Costs: Variable manufacturing costs, per unit Export tariff, per unit Income (Loss), per unitStep by Step Solution
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