FINANCIAL ACCOUNTING
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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