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 $2,100 per ton, and ingot can be sold without further processing for $1,050 per ton. Ingot is produced in batches of 90 tons by smelting 500 tons of bauxite, which costs $109 per ton of bauxite. Rolled aluminum will require additional processing costs of $620 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. Use a minus sign to indicate subtracted amounts, negative amounts, or a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (AIt. 2) February 5 Sell Ingot (Alternative 1) Process Further into Rolled Aluminium (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per ton Costs, per ton Income (loss), per ton Chook y Work 1. For both products, subtract the costs from the revenues per ton. Determine the differential effect on income of the revenues, costs, and income (loss). Learning Objective 1 2. International Aluminum Co. should process aluminum ingot further, rather than sell aluminum ingot because profits would be increased