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Differential Analysis for Further Processing The management of international Aluminum Co. is considering whether to process aluminum ingot further into ruled aluminum. Rolled aluminum can
Differential Analysis for Further Processing The management of international Aluminum Co. is considering whether to process aluminum ingot further into ruled aluminum. Rolled aluminum can be sold for $2,400 per ton, and inget can be sold without hurther processing for $1.200 per ton. Ingot is produced in batches of 60 tons by smelting 530 tons of bauxite, which costs $100 per ton of bauxite, Rolled aluminum will require additional processing costs of $510 per ton of ingot, and 1.25 tons of inget 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, un minus sign to indicate a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (Alt. 2) February 5 Line Item Description Sell Ingot (Alternative 1) Revenues, per batch Costs, per batch Process Further into Rolled Aluminum Differential Effects (Alternative 3) (Alternative 2) Prodt Coss), per batch) 2. International Aluminum Co process aluminum inget further, rather than set aluminum ingot becane profits would be The management or international Alun num Co. is considering whether to process aluminum ingot further into per ton. Ingot is produced in batches of 80 tons by smelting 530 tons of bauxite, which costs $106 per ton of B ton of rolled aluminum. Required: 1. Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1) minus sign to indicate a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (Alt. 2) February 5 Line Item Description Sell Ingot (Alternative 1) Process Further into Rolled Aluminum Differential Effects (Alternative 2) (Alternative 2) Revenues, per batch Costs, per batch Profit (loss), per batch 2. International Aluminum Co. D ch should should not process aluminum ingot further, rather than sell aluminum i Check My Work 3 more Check My Work uses remaining a 2 O got because profits would be increased reduced Email Instru
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