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Differential Analysis Report for Further Processing The management of Dorsch Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum

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Differential Analysis Report for Further Processing The management of Dorsch Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be for $4,440 per ton, and ingot can be sold without further processing for $2,486.4 per ton. Ingot is produced in batches of 120 tons by smelting 300 of bauxite, which costs $621.6 per ton. Rolled aluminum will require additional processing costs of $932.4 per ton of ingot, and 1.2 tons of ingot will produce 1 ton of rolled aluminum (due to trim losses). Required: 1. Prepare a report presenting a differential analysis associated with the further processing of aluminum ingot to produce rolled aluminum. Dorsch Aluminum Co. Proposal to Process Raw Sugar Further Differential revenue from further processing per batch: Revenue from sale of rolled alumily Revenue from sale of aluminum it V Differential revenue - Differential cost per batch: Additional cost of processing rolled alum ~ X Differential gain from further processing aluminum ingot, Feedback

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