Subject name: Accounting & Finance Decision-Making Mangers

The below problem is a Differential Analysis problem, including *****Sell-Process type problem*** Please utilize differential analysis to solve the problems. Please show all work and responses in the answer with an explanation... on the Excel worksheet with formulas.

"Yummy Tater Company purchases potatoes from farmers. The potatoes are then peeled which produces two intermediary product: peels and the depeeled spuds. The peels can be processed further to make a cocktail of organic nutrients. The depeeled spuds can be processed further to make frozen french fries.

A batch of potatoes costs $48 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $30 or processed further for $22 to make the cocktail of nutrients that are sold for $50. The depeeled spuds can be sold as is for $45 or processed further for $15 to make frozen french fries that are sold for $62." Required:

"a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? Show your work!

b. Should each of the intermediate products, peels and depeeled spuds, be sold as is or processed further into an end product? Explain. "