Process or Sell 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 Process Sell Further Differential Product P into Product Q Effect (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ $ $ Costs, per unit Profit (loss), per unit $ $ $ Should Product P be sold (Alternative 1) or processed further into Product Q (Alternative 2)?
Process or Sell 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 Process Sell Further Differential Product P into Product Q Effect (Alternative 1) (Alternative 2) (Alternative 2) Revenues, per unit $ $ $ Costs, per unit Profit (loss), per unit $ $ $ Should Product P be sold (Alternative 1) or processed further into Product Q (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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Question
Process or Sell
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 |
| Process | |||
| Sell | Further | Differential | |
| Product P | into Product Q | Effect | |
| (Alternative 1) | (Alternative 2) | (Alternative 2) | |
| Revenues, per unit | $ | $ |
$ |
| Costs, per unit |
|
||
| $ | $ |
$ |
Should Product P be sold (Alternative 1) or processed further into Product Q (Alternative 2)?
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