Use this information for Carmen Co. to answer the question that follow.

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.05 per pound and costs $15.70 per pound to produce. Product D would sell for $37.45 per pound and would require an additional cost of $9.75 per pound to produce.

What is the differential cost of producing Product D?

a.$5.85 per pound

b.$9.75 per pound

c.$11.70 per pound

d.$7.80 per pound