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)?
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)?
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 3BE: Make or buy A company manufactures various-sized plastic bottles for its medicinal product. The...
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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 |
$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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