Question
Process or Sell Product T is produced for $3.90 per pound. Product T can be sold without additional processing for $4.65 per pound, or processed
Process or Sell
Product T is produced for $3.90 per pound. Product T can be sold without additional processing for $4.65 per pound, or processed further into Product U at an additional cost of $0.58 per pound. Product U can be sold for $5.30 per pound.
Prepare a differential analysis dated August 2, 2014, on whether to sell Product T (Alternative 1) or process further into Product U (Alternative 2). If required, round your answers to two decimal places.
| Sell Product T (Atl 1)-- Process further into Product U (Alt 2)--Differential effect on income (Alt 2)
Revenues per pound | $ $ $
Costs, per pound |
Income cost per pound | $ $ $
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