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Instructions The management or Dominican Sugar Company is considering whether to process turther raw sugar into retined sugar. Refined sugar can be sold tor $2.20
Instructions The management or Dominican Sugar Company is considering whether to process turther raw sugar into retined sugar. Refined sugar can be sold tor $2.20 per pound, and raw sugar can be soid without further processing for $1.41 per pound. Raw sugar is produced in batches of 42,000 pounds by processing 100,000 pounds of sugar cane, which costs S0.38 per pound of cane. Refined sugar will require additional processing costs of SD.51 per pound of raw sugar, and 1.25 pounds of raw sugar will produce 1 pound of refined sugar Required: 1. Prepare a dierential analysis as af March 24 to determine whemer to sel raw sugar (Aiternahive 1) or process further into refined sugar (Alternative 2). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign ir there i8 no amount or an amount is zero, enter "O" A colon () wi automaticaly aopear if required 2. Briefly report your recommendations Differential Analysis Reter to 1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Airemetive 1) or process uther nto refined sugar (Altemanive 2). Refer to the Amount Descniptions ist provided for the exect wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbsrs use a minus sign. Wthere is no amount or an amount is zero, enter "O". A colon ( wW automaticaly appsar if required Descnptions ias Amount Descriptions Differential Analysis 1 Alternative 2) Sell Raw Sugar (Altemative 1) or Process Further into Refined Supar ( Costs, per batch Income (Loss), per batch Revenues, per batch March 24 Process Further into Refined Sugar Alternative 1) lternative 2) Alternative 2) Differential Effect Sell Raw Sugar on Income 2. Briefly report your recommendations. Dominican Sugar Company process raw sugar further to produce refined sugar because profits would be increased
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