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ADP Mining Company mines an iron ore called Alpha. During the month of August, 409,000 tons of Alpha were mined and processed at a cost
ADP Mining Company mines an iron ore called Alpha. During the month of August, 409,000 tons of Alpha were mined and processed at a cost of $747,000. 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 $25 /ton Super Delta $29 ton Pi $27 ton Precision Pi $33 /ton Selling price Processing costs to refine Delta into Super Delta are $2,699,400; processing costs to refine Pi into Precision Pi are $490,800 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? Incremental Profit (Loss) ADP Mining Company mines an iron ore called Alpha. During the month of August, 409,000 tons of Alpha were mined and processed at a cost of $747,000. 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 $25 /ton Super Delta $29 ton Pi $27 ton Precision Pi $33 /ton Selling price Processing costs to refine Delta into Super Delta are $2,699,400; processing costs to refine Pi into Precision Pi are $490,800 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? Incremental Profit (Loss)
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