1. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.80 per pound and costs $14.65 per pound to produce. Product D would sell for $40.10 per pound and would require an additional cost of $10.05 per pound to produce.

   What is the differential cost of producing Product D?

   a.$6.03 per pound

   b.$8.04 per pound

   c.$10.05 per pound

   d.$12.06 per pound