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Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.15 per pound and costs $14.55 per pound
Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.15 per pound and costs $14.55 per pound to produce. Product D would sell for $40.10 per pound and would require an additional cost of $9.00 per pound to produce. The differential cost of producing Product D is Oa. $9.00 per pound Ob. $5.40 per pound Oc. $10.80 per pound Od. $7.20 per pound
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