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Differential Analysis for further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further inte rolled aluminum. Rolled aluminum can

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Differential Analysis for further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further inte rolled aluminum. Rolled aluminum can be sold for $2,500 per ton, and ingot can be sold without further processing for $1,250 per ton. Ingot is produced in batches of 86 tons by smelting 530 tons of bauxite, which costs $100 per ton of bauxite. Rolled aluminum will require additional processing costs of $610 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 Differential Sell Ingot further into Effects (Alternative 1) Rolled (Alternative 2) Aluminum (Alternative 2 Revenues, per batch Costs, per batch Proft (los), per batch 2. International Aluminum Co. process aluminum ingot further, rather than sell aluminum ingot because profits would be

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