Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). If required, round your answers to the nearest whole dollar. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Sell Product J19 (Alternative 1) Process Further into Product R33 (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit $fill in the blank e360ac058fa6fb3_1 $fill in the blank e360ac058fa6fb3_2 $fill in the blank e360ac058fa6fb3_3 Costs, per unit fill in the blank e360ac058fa6fb3_4 fill in the blank e360ac058fa6fb3_5 fill in the blank e360ac058fa6fb3_6 Income (loss), per unit $fill in the blank e360ac058fa6fb3_7 $fill in the blank e360ac058fa6fb3_8 $fill in the blank e360ac058fa6fb3_9 b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). If required, round your answers to the nearest whole dollar. Differential Analysis Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) April 30 Sell Product J19 (Alternative 1) Process Further into Product R33 (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit $fill in the blank e360ac058fa6fb3_1 $fill in the blank e360ac058fa6fb3_2 $fill in the blank e360ac058fa6fb3_3 Costs, per unit fill in the blank e360ac058fa6fb3_4 fill in the blank e360ac058fa6fb3_5 fill in the blank e360ac058fa6fb3_6 Income (loss), per unit $fill in the blank e360ac058fa6fb3_7 $fill in the blank e360ac058fa6fb3_8 $fill in the blank e360ac058fa6fb3_9 b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 5BE
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Question
Process or Sell
Product J19 is produced for $3.48 per gallon. Product J19 can be sold without additional processing for $4.05 per gallon, or processed further into Product R33 at an additional cost of $0.46 per gallon. Product R33 can be sold for $4.34 per gallon.
a. Prepare a differential analysis dated April 30 on whether to sell Product J19 (Alternative 1) or process further into Product R33 (Alternative 2). If required, round your answers to the nearest whole dollar.
| Differential Analysis | |||
| Sell Product J19 (Alt. 1) or Process Further into Product R33 (Alt. 2) | |||
| April 30 | |||
| Sell Product J19 (Alternative 1) | Process Further into Product R33 (Alternative 2) | Differential Effect on Income (Alternative 2) | |
| Revenues, per unit | $fill in the blank e360ac058fa6fb3_1 | $fill in the blank e360ac058fa6fb3_2 | $fill in the blank e360ac058fa6fb3_3 |
| Costs, per unit | fill in the blank e360ac058fa6fb3_4 | fill in the blank e360ac058fa6fb3_5 | fill in the blank e360ac058fa6fb3_6 |
| Income (loss), per unit | $fill in the blank e360ac058fa6fb3_7 | $fill in the blank e360ac058fa6fb3_8 | $fill in the blank e360ac058fa6fb3_9 |
b. Should Product J19 be sold (Alternative 1) or processed further into Product R33 (Alternative 2)?
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