Process or Sell Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing for $4.16 per gallon, or processed further into Product R33 at an additional cost of $0.41 per gallon. Product R33 can be sold for $4.52 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). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. 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 Effects (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit
Process or Sell Product J19 is produced for $3.36 per gallon. Product J19 can be sold without additional processing for $4.16 per gallon, or processed further into Product R33 at an additional cost of $0.41 per gallon. Product R33 can be sold for $4.52 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). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss. 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 Effects (Alternative 2) Revenues, per unit Costs, per unit Profit (loss), per unit
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 $3.36 per gallon. Product J19 can be sold without additional processing for $4.16 per gallon, or processed further into Product R33 at an additional cost of $0.41 per gallon. Product R33 can be sold for $4.52 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). Round your answers to the nearest cent. If required, use a minus sign to indicate a loss.
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 Effects (Alternative 2) |
|
Revenues, per unit | |||
Costs, per unit | |||
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