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)?

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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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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