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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: Super Delta $29 /ton Pi $27 /ton Precision Pi $33 /ton Selling price $25 /ton Processing costs to refine Delta into Super Delta are S2,699,400; 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.) cremental Profit (Loss) a-2. What would be the incremental profit or loss per unit if Pi is refined into Precision Pi? cremental Profit (Loss)
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