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the management of Jamaican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $2.24 per
the management of Jamaican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $2.24 per pound, and raw sugar can be sold without further processing for $1.25 per pound. Raw sugar is produced in batches of 34,800 pounds by processing 87,000 pounds of sugar cane, which costs $0.31 per pound of cane. Refined sugar will require additional processing costs of $0.47 per pound of raw sugar, and 1.2 pounds of raw sugar will produce 1 pound of refined sugar.
1. Prepare a report presenting a differential analysis associated with the further processing of raw sugar to produce refined sugar. Jamaican Sugar Company Proposal to Process Raw Sugar Further Differential revenue from further processing per batch: Revenue from sale of refined su Revenue from sale of raw suga! Differential revenue Differential cost per batch: Additional cost of processing re Differential gain from further
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