Homework answers / question archive / Process or Sell Product T is produced for $3

Process or Sell Product T is produced for $3

Accounting

Share With

Process or Sell Product T is produced for $3.38 per pound. Product T can be sold without additional processing for $4.01 per pound or processed further into Product U at an additional cost of $0.36 per pound. Product U can be sold for $4.36 per pound. Prepare a differential analysis dated November 15 on whether to sell I (Alternative 1) or process further into U (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 T (Alt. 1) or Process Further into Product U (Alt. 2) November 15 Process Further Differential Effect Sell Product I into Product on Income (Alternative 1) U (Alternative 2) (Alternative 2) Revenues, per unit 4.01 4.36 35 Costs, per unit -3.38 -3.74 -0.36 Income (Loss), per unit 0.63 0.62 -0.01 Should Product T be sold (Alternative 1) or processed further into Product U (Alternative 2)? Sell Product I