Question

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15.00 per pound to produce. Product D would sell for $44.55 per pound and would require an additional cost of $11.75 per pound to produce. The differential cost of producing Product D is

Answer 1

Answer:

$20.75

Explanation:

Calculation to determine what The differential cost of producing Product D is

Using this formula

Differential cost =Revenue from sale of product D−Revenue from sale of product J

​

Let plug in the formula

Differential cost ​=$44.55−$23.80

Differential cost =$20.75

​

Therefore The differential cost of producing Product D is $20.75