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Differential Analysis for Further Processing The management of Dominican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can
Differential Analysis for Further Processing The management of Dominican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $2.22 per pound, and raw sugar can be sold without further processing for $1.24 per pound. Raw sugar is produced in batches of 39,600 pounds by processing 99,000 pounds of sugar cane, which costs $0.31 per pound of cane. Refined sugar will require additional processing costs of $0.47 per pound of raw sugar, and 1.20 pounds of raw sugar will produce 1 pound of refined sugar. Required: 1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2). If required, do not round interim calculations. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Raw Sugar (Alt. 1) or Process Further into Refined Sugar (Alt. 2) March 24
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