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Process or Sell Product T is produced for $3.36 per pound. Product T can be sold without additional processing for $4.16 per pound or processed
Process or Sell Product T is produced for $3.36 per pound. Product T can be sold without additional processing for $4.16 per pound or processed further into Product U at an additional cost of $0.38 per pound. Product U can be sold for $4.44 per pound. Prepare a differential analysis dated November 15 on whether to sell T (Alternative 1) or process further into U (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product T (Alt. 1) or Process Further into Product V (Alt. 2) November 15 Sell Product I Process Further Differential Effect into Product on Income (Alternative 1) u (Alternative 2) (Alternative 2) Revenues, per unit $ 4.16 $ 4.44 $ 0.28 Costs, per unit 3.36 x 3.74 x 0.38 x Income (Loss), per unit $ 0.80 $ 0.70 $ 0.10 x
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