Carmen Co. can further process Product J to produce Product D. Product J is currently selling...

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Carmen Co. can further process Product J to produce Product D. Product J is currently selling...

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20.40 per pound and costs $16.45 per pound to produce. Product D would sell for $42.35 per pound and would require an additional cost of $8.40 per pound to produce.

What is the differential cost of producing Product D?

a. $6.72 per pound

b. $10.08 per pound

c. $8.40 per pound

d. $5.04 per pound

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Answer 1

Answer #1

Answer: C) $8.40 Per Pound

The additional cost to Produce the Product D = $ 8.40Per Pound, This is the differential cost incurred to Further Process of Product J to Product D

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Answer 2

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