Grace Co. can further process Product B to produce Product C. Product B is currently selling for $24 per pound and costs $15 per pound to produce. Product C would sell for $42 per pound and would require an additional cost of $11 per pound to produce. What is the differential revenue of producing and selling Product C?

a.$27 per pound

b.$42 per pound

c.$31 per pound

d.$18 per pound

2)

Stryker Industries received an offer from an exporter for 28,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available:

Domestic unit sales price	$24
Unit manufacturing costs:
Variable	10
Fixed	5

What is the differential cost from the acceptance of the offer?

a.$504,000

b.$672,000

c.$140,000

d.$280,000

3)

The amount of income that would result from an alternative use of cash is called:

a.sunk cost

b.differential revenue

c.opportunity cost

d.differential income