1. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.40 per pound and costs $16.45 per pound to produce. Product D would sell for $42.35 per pound and would require an additional cost of $8.40 per pound to produce.

   What is the differential cost of producing Product D?

   a. $6.72 per pound

   b. $10.08 per pound

   c. $8.40 per pound

   d. $5.04 per pound

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