FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Process or Sell
Product A is produced for $3.54 per pound. Product A can be sold without additional processing for $4.14 per pound or processed further into Product B at an additional cost of $0.45 per pound. Product B can be sold for $4.58 per pound.
Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis | |||
Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) | |||
November 15 | |||
Sell Product A (Alternative 1) |
Process Further into Product B (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
Revenues, per unit | $fill in the blank 694e3df9c00701f_1 | $fill in the blank 694e3df9c00701f_2 | $fill in the blank 694e3df9c00701f_3 |
Costs, per unit | fill in the blank 694e3df9c00701f_4 | fill in the blank 694e3df9c00701f_5 | fill in the blank 694e3df9c00701f_6 |
Income (Loss), per unit | $fill in the blank 694e3df9c00701f_7 | $fill in the blank 694e3df9c00701f_8 | $fill in the blank 694e3df9c00701f_9 |
Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)?
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