The management of International Aluminum Co$.$ is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $$2,100$ per ton, and ingot can be sold without further processing for $$1,050$ per ton. Ingot is produced in batches of $80$ tons by smelting $500$ tons of bauxite, which costs $$104$ per ton of bauxite. Rolled aluminum will require additional processing costs of $$620$ per ton of ingot, and $1\mathrm{.}25$ tons of ingot will produce $1$ ton of rolled aluminum.

Required:

Question Content Area

$1.$ 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 $5$

Sell Ingot

$($Alternative $1)$ Process

Further into

Rolled

Aluminum $($Alternative $2)$ Differential

Effects

$($Alternative $2)$

Revenues, per batch $fill in the blank $71629$e$01705$bf$8$a$\_1$

$fill in the blank $71629$e$01705$bf$8$a$\_2$

$fill in the blank $71629$e$01705$bf$8$a$\_3$

Costs, per batch fill in the blank $71629$e$01705$bf$8$a$\_4$

fill in the blank $71629$e$01705$bf$8$a$\_5$

fill in the blank $71629$e$01705$bf$8$a$\_6$

Profit $($loss$),$ per batch $fill in the blank $71629$e$01705$bf$8$a$\_7$

$fill in the blank $71629$e$01705$bf$8$a$\_8$

$fill in the blank $71629$e$01705$bf$8$a$\_9$

Question Content Area

$2.$ International Aluminum Co$.$

process aluminum ingot further, rather than sell aluminum ingot because profits would be

$.$