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Carmen Co . can further process Product J to produce Product D . Product J is currently selling for $ 2 0 . 0 0

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.00 per pound and costs $15.75 per pound to produce. Product D would sell for $38.00 per pound and would require an additional cost of $8.55 per pound to produce.
The differential cost of producing Product D is
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$6.50 per pound
$8.55 per pound
$17.00 per pound
$5.25 per pound

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