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 $$2,200$ per ton, and ingot can be sold without further processing for $$1,100$ per ton. Ingot is produced in batches of $81$ tons by smelting $510$ tons of bauxite, which costs $$108$ per ton of bauxite. Rolled aluminum will require additional processing costs of $$630$ per ton of ingot, and $1\mathrm{.}25$ tons of ingot will produce $1$ ton of rolled aluminum.

Required:

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

Sell Ingot $($Alt$.1)$ or Process Further into Rolled Aluminum $($Alt$.2)$

February $5$

$\backslash$table$[[$Line Item Description,$\backslash$table$[[$Sell Ingot$],[($Alternative$]],,\backslash$table$[[$Process Further$],[$into Rolled Aluminum$],[($Alternative $2)]],\backslash$table$[[$Differential Effects$],[($Alternative $2)]]],[$Revenues$,$ per batch,$,,x,$$