Question

Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15.55 per pound to produce. Product D would sell for $35.65 per pound and would require an additional cost of $11.65 per pound to produce. What is the differential cost of producing Product D

Answer 1

Answer:

the differential cost is $11.65 per pound

Explanation:

The computation of the differential cost of producing product D is shown below:

Here the differential cost of generating product B should be considered as the additional cost needed to produced i.e. $11.65 per pound

Therefore the differential cost is $11.65 per pound

So, the same should be relevant