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 $2,300 per ton, and ingot can be sold without further processing for $1,150 per ton. Ingot is produced in batches of 86 tons by smelting 550 tons of bauxite, which costs $101 per ton of bauxite. Rolled aluminum will require additional processing costs of $600 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 Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (Alt. 2) February 5 Process Sell Ingot Differential Further into Effects (Alternative 1) Rolled Aluminum (Alternative 2) (Alternative 2) Revenues, per batch 9.900 184.000 X A5, 100X Costs, per batch 55,550 107,150 51400 Profit (los), per batch 76,50 X 33.560 2. International Aluminum Co should process aluminum ingot further, rather than sell aluminum Ingot because profits would be increased