Product P is produced for $31 per gallon. Product P can be sold without additional processing for $47 per gallon or processed further into Product Q at an additional cost of $7 per gallon. Product Q can be sold for $50 per gallon.Prepare a differential analysis dated February 26 on whether to Sell Product P (Alternative 1) or Process Further into Product Q (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.Differential AnalysisSell Product P (Alt. 1) or Process Further into Product Q (Alt. 2)February 26 SellProduct P(Alternative 1)ProcessFurtherinto Product Q(Alternative 2)DifferentialEffect(Alternative 2)Revenues, per unit$fill in the blank 11f69df4b02d053_1$fill in the blank 11f69df4b02d053_2$fill in the blank 11f69df4b02d053_3Costs, per unitfill in the blank 11f69df4b02d053_4fill in the blank 11f69df4b02d053_5fill in the blank 11f69df4b02d053_6Profit (loss), per unit$fill in the blank 11f69df4b02d053_7$fill in the blank 11f69df4b02d053_8$fill in the blank 11f69df4b02d053_9Should Product P be sold (Alternative 1) or processed further into Product Q (Alternative 2)?

Where a product which can be further processed in to another product , in that case , we need to…

Answered: Product P is produced for $31 per…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Product P is produced for $31 per gallon. Product P can be sold without additional processing for $47 per gallon or processed further into Product Q at an additional cost of $7 per gallon. Product Q can be sold for $50 per gallon.

Prepare a differential analysis dated February 26 on whether to Sell Product P (Alternative 1) or Process Further into Product Q (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Sell Product P (Alt. 1) or Process Further into Product Q (Alt. 2)
February 26
	Sell Product P (Alternative 1)	Process Further into Product Q (Alternative 2)	Differential Effect (Alternative 2)
Revenues, per unit	$fill in the blank 11f69df4b02d053_1	$fill in the blank 11f69df4b02d053_2	$fill in the blank 11f69df4b02d053_3
Costs, per unit	fill in the blank 11f69df4b02d053_4	fill in the blank 11f69df4b02d053_5	fill in the blank 11f69df4b02d053_6
Profit (loss), per unit	$fill in the blank 11f69df4b02d053_7	$fill in the blank 11f69df4b02d053_8	$fill in the blank 11f69df4b02d053_9

Should Product P be sold (Alternative 1) or processed further into Product Q (Alternative 2)?

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