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Question Differential Analysis for Futher Processing The management of International Aluminum Co.is Considering whether to process aluminum in got Futher into rolled aluminus. Rolled aluminum
Question Differential Analysis for Futher Processing The management of International Aluminum Co.is Considering whether to process aluminum in got Futher into rolled aluminus. Rolled aluminum can be sold for $2400 Perton, and infot can be sold without futher Processing for 1200 Per ton. Ingot is produced in batches of 86 tous by smelting sto tons of bauxite, which costs $183 Per ton Of bauxite. Rolled aluminum will require additional Processing costs of $640 Per ton of ingot, and 1.25 tons of in got will produce a ton of rolled alummum. Required: & Prefare a differential analysis as of February 5 to determine whether to sell aluninum in got CAlternative 1) or Process Futher into solled alu- minum Calternative 2). If required, do not round interim calculation so If required, Use a minus sign to Indicate a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Futher anto Rolled Aluminum (Alt. 2) February 5 Sell Ingot (Alternativel) Process Futher indo Rolled Different Effects Revenues, per batch CAl tematies) (Alternative $ Costs, per batch Profit Closs), ferbatch 010 2. International Aluminum Co. Process aluminum Ingot further rather than sell aluminum in got because poof its would be
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