Gent Designs requires three units of part A for every unit of A1 that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4,200 units were produced:

Direct materials	$4.00
Direct labor	1.50
Manufacturing overhead	1.30
Total	$6.80

Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,100 units of part A for the next years production.

Cory Corporation has offered to supply 6,100 units of part A at a price of $7.00 per unit. If Gent accepts the offer, all of the variable costs and $1,260 of the fixed costs will be avoided.

A. Calculate the differential cost?

Cost to buy
Cost to make
Differential cost

B. Underground Food Store has 5,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.50. The beef could be sold "as is" for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.80 per pound, and each pound could be sold for $6.40. What should be done with the beef, and why? If required, round final answers to two decimal places.

The beef should be processed further since the sales price increases by _____ per pound and the cost only increases by ______ per pound.