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ADP Mining Company mines an iron ore called Alpha Dumg the month ot August. 419 000 tons of Alpna ere mined and processed at a
ADP Mining Company mines an iron ore called Alpha Dumg the month ot August. 419 000 tons of Alpna ere mined and processed at a cost of S752 000 As theAlpna ore Is mined it is processed into Delta and PL where 60% ofthe Alpha output becomes Delta and 40% becomes Pl Each product can be sold as is or processed into the refined products Super Delta and Precision Pl. Seling prices for these producis are as follows: Delta 23 ton Super Delt Precision Pi Processing costs to retre Delta nto Super Deta are $2,514,000; processing costs to renne Finto Precison 12re $335.200 Required: a-1. What would be the Incremental prot or loss per unit if Delta is refined Into Super Dalta? (Loss amounts should be Indicated with a minus sign.) Answer is complete but not entirely correct. a-2. what would be the incremental pront or loss per unit f ..s rehned nto Precision P? 3 Answer is complete but not entirely correct. 670 400 a-3. Shouid Delta be sold as is or refined into Super Deita? Delta should be sold as is Delta should be proceesed further and sold es Super Delte 3-4. Should Pi be sold as is or rened into Precision Pi? Pi should be processed further and sold as Precision Pi. Pi should be sold es ia. b. Identify any costs in the problem that are not relevant to this decision. The $752 000 cost incurred to produce the Alpha ore is not relevant Processing costs to reline Deta into Super Delte are not relevant Procassing costs to refina Pl Inta Pracislon Pl ara $335 200 not ralavan c. What is the maximum prot that ADP Mining Company can expect to eam from the production of the 419,000 tons of Alpha? Answer is not complete
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