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solve Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolied aluminum. Rolled aluminum
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Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolied aluminum. Rolled aluminum can be sold fo $2,300 per ton, and ingot can be sold without further processing for $1,150 per ton. Ingot is produced in batches of 90 tons by amelting 550 tons of bauxite, which costs $102 per ton of bauxite. Aolled aluminum will require additional processing costs of $620 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum. Required 1. Prepare a ddferential analysis as of February 5 to determine whether to sell aluminum ingot (Aiternative 1 ) or process further into rolled aluminum (Alternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (Alt, 2) February 5 International Aluminum Co. process aluminum ingot further, rather than sell aluminum ingot because profits would be Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolied aluminum. Rolled aluminum can be sold fo $2,300 per ton, and ingot can be sold without further processing for $1,150 per ton. Ingot is produced in batches of 90 tons by amelting 550 tons of bauxite, which costs $102 per ton of bauxite. Aolled aluminum will require additional processing costs of $620 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum. Required 1. Prepare a ddferential analysis as of February 5 to determine whether to sell aluminum ingot (Aiternative 1 ) or process further into rolled aluminum (Alternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss. Differential Analysis Sell Ingot (Alt. 1) or Process Further into Rolled Aluminum (Alt, 2) February 5 International Aluminum Co. process aluminum ingot further, rather than sell aluminum ingot because profits would be Step by Step Solution
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