differential analysis for further processing

Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum Can be sold for $2,500 per ton, and ingot can be sold without further processing for $1,250 per ton. Ingot is produced in batches of 85 tons by smelting 530 tons of bauxite, which costs $103 per ton of bauxite. Rolled aluminum will require additional processing costs of $640 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum. Required: 1. Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1 ) or process further into rolled aluminum (Alternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss. Differential Analysis Soll Tnnnt (alt 1) nr Process Further into Rolled Aluminum (Alt. 2) 2. International Aluminum Co. process aluminum ingot further, rather than sell aluminum ingot because profits would be Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum Can be sold for $2,500 per ton, and ingot can be sold without further processing for $1,250 per ton. Ingot is produced in batches of 85 tons by smelting 530 tons of bauxite, which costs $103 per ton of bauxite. Rolled aluminum will require additional processing costs of $640 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum. Required: 1. Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1 ) or process further into rolled aluminum (Alternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss. Differential Analysis Soll Tnnnt (alt 1) nr Process Further into Rolled Aluminum (Alt. 2) 2. International Aluminum Co. process aluminum ingot further, rather than sell aluminum ingot because profits would be