Product F is produced for $3.42 per pound. Product F can be sold without additional processing for $4.07 per pound or processed further into Product G at an additional cost of $0.43 per pound. Product G can be sold for $4.42 per pound. Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Product F (Alt. 1) or Process Further into Product G (Alt. 2)November 15   Sell Product F (Alternative 1) Process Further into Product G (Alternative 2) Differential Effect (Alternative 2) Revenues, per unit $fill in the blank 15afe8f7b050fa7_1 $fill in the blank 15afe8f7b050fa7_2 $fill in the blank 15afe8f7b050fa7_3 Costs, per unit fill in the blank 15afe8f7b050fa7_4 fill in the blank 15afe8f7b050fa7_5 fill in the blank 15afe8f7b050fa7_6 Profit (loss), per unit $fill in the blank 15afe8f7b050fa7_7 $fill in the blank 15afe8f7b050fa7_8 $fill in the blank 15afe8f7b050fa7_9   Should Product F be sold (Alternative 1) or processed further into Product G (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 11E: Sell or process further Calgary Lumber Company incurs a cost of 315 per hundred board feet (hbf) in...
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Product F is produced for $3.42 per pound. Product F can be sold without additional processing for $4.07 per pound or processed further into Product G at an additional cost of $0.43 per pound. Product G can be sold for $4.42 per pound.

Prepare a differential analysis dated November 15 on whether to Sell Product F (Alternative 1) or Process Further into Product G (Alternative 2). If required, round your answer to the nearest cent. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential AnalysisSell Product F (Alt. 1) or Process Further into Product G (Alt. 2)November 15
 

Sell
Product F
(Alternative 1)
Process
Further into
Product G
(Alternative 2)


Differential
Effect
(Alternative 2)
Revenues, per unit $fill in the blank 15afe8f7b050fa7_1 $fill in the blank 15afe8f7b050fa7_2 $fill in the blank 15afe8f7b050fa7_3
Costs, per unit fill in the blank 15afe8f7b050fa7_4 fill in the blank 15afe8f7b050fa7_5 fill in the blank 15afe8f7b050fa7_6
Profit (loss), per unit $fill in the blank 15afe8f7b050fa7_7 $fill in the blank 15afe8f7b050fa7_8 $fill in the blank 15afe8f7b050fa7_9
 

Should Product F be sold (Alternative 1) or processed further into Product G (Alternative 2)?

 
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