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ADP Mining Company mines an iron ore called Alpha. During the month of August, 413,000 tons of Alpha were mined and processed at a cost
ADP Mining Company mines an iron ore called Alpha. During the month of August, 413,000 tons of Alpha were mined and processed at a cost of $749,000. 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 $11 /ton Super Delta $16 /ton Pi $15 /ton Precision P $26 /ton Selling price Processing costs to refine Delta into Super Delta are $2,478,000; processing costs to refine Pi into Precision Pi are $1,652,000 Required a-1. What would be the incremental profit or loss per unit if Delta is refined into Super Delta? (Loss amounts should be indicated with a minus sign.) Incremental Profit (Loss)$ (5) a-2. What would be the incremental profit or loss per unit if Pi is refined into Precision Pi? Incremental Profit (Loss) 1
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