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zvonat [6]
3 years ago
10

Hill Co. can further process Product O to produce Product P. Product O is currently selling for $60 per pound and costs $42 per

pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential cost of producing Product P is $13 per pound.(A) True(B) False
Business
1 answer:
NARA [144]3 years ago
6 0

Answer:

(A) True

Explanation:

Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce

So the statement “The differential cost of producing Product P is $13 per pound” is true

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