=+P12-4 Differential analysis report for farther processing Obj 1 y 1. Differential reve nue, $9,800 The management
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=+P12-4 Differential analysis report for farther processing Obj 1 y 1. Differential reveĀ¬
nue, $9,800 The management ofDelta Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $1.75 per pound, and raw sugar can be sold without further processing for $1.05 per pound. Raw sugar is produced in batches of 24,000 pounds by processing 90,000 pounds ofsugar cane, which costs $0.25 per pound.
Refined sugar will require additional processing costs of $0.36 per pound of raw sugar, and 1.2 pounds ofraw sugar will produce 1 pound ofrefined sugar.
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