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Differential Analysis for further Processing The management of Interational Aluminum Co. is considering whether to process aluminum Ingot further into rolled aluminum. Rolled aluminum can

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Differential Analysis for further Processing The management of Interational Aluminum Co. is considering whether to process aluminum Ingot further into rolled aluminum. Rolled aluminum can be sold for $2,200 per ton, and ingat can be sold without further processing for $1,100 per ton. Ingat is produced in batches of 99 tons by smelting 510 tons of bauxite, which costs $100 per ton of bauxite. Rolled aluminum will require additional processing costs of S620 per tan af ingot, and 1.25 tons of ingot will praduce 1 tan af rolled aluminum Required: 1. Prepare a differential analysis as of February 5 ta determine whether to sell aluminum ingat (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 Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (Alt. 2) February 5 Process Differential Sell Ingot Further into Effects (Alternative 1) Rolled Aluminum (Alternative 2) (Alternative 2) + Revenues, per batch Costs, per batch Profit (loss), per batch 2. International Aluminum Co. process alurninum ingot further, rather than sell aluminum ingot because profits would be Check My Work 3 more Check My Work uses remaining. Previous Next >

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