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spayn [35]
3 years ago
9

Pheasant Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28

per pound to produce. Product C would sell for $60 per pound and would require an additional cost of $24 per pound to produce. What is the differential cost of producing Product C
Business
1 answer:
Gnom [1K]3 years ago
3 0

Answer:

differential cost of producing product C = $24 per pound

Explanation:

given data

B  currently selling = $30 per pound

produce cost = $28 per pound

C would sell =  $60 per pound

produce additional cost = $24 per pound

to find out

What is the differential cost of producing Product C

solution

we get differential cost of producing product C is express as

differential cost of producing product C = cost of (B+C) - cost of B   .............1

put here value we get

differential cost of producing product C =  (28+24) - 28

differential cost of producing product C = $24 per pound

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Answer:

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Conversion costs are the costs incurred on activities that convert raw material to finished goods. Conversion costs are calculated by using following formula:

Conversion costs = Direct labor + Factory overhead.

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Therefore:

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Answer:

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The Acid-test and current ratio also enable one to find out if a company is able to pay off its current obligations/ liabilities using current assets. With the acid-test ratio being above one, XYZ is able to pay off short-term debt using quick assets.

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Price relating to market or in terms of quantity demanded and quantity supplied is referred to as equilibrium price or equilibrium quantity. When the market price is below equilibrium, quantity supplied of a product will be less than the quantity demanded for it because the price of goods are cheaper. But when price is above equilibrium, quantity supplied will be greater than quantity demanded because the price of goods is high.

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