The management of International Aluminum Co$.$ is considering whether to process aluminum ingot further into rolled

aluminum. Rolled aluminum can be sold for $$2,300$ per ton, and ingot can be sold without further processing for $$1,150$ per

ton. Ingot is produced in batches of $89$ tons by smelting $550$ tons of bauxite, which costs $$104$ per ton of bauxite. Rolled

aluminum will require additional processing costs of $$600$ per ton of ingot, and $1\mathrm{.}25$ tons of ingot will produce $1$ ton of rolled

aluminum.

Required:

Prepare a differential analysis as of February $5$ to determine whether to sell aluminum ingot $($Alternative $1)$ 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 $5$