contestada

Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $57 per pound and would require an additional cost of $24 per pound to produce. What is the differential cost of producing Product C? a. $29 per pound b. $24 per pound c. $57 per pound d. $31 per pound

Respuesta :

TomShelby

Answer:

b. $24 per pound

Explanation:

                          prouct B          product C      differntial analysis

sales price               31                       57                   26

cost                         29         29+24= 53                  -24

contribution              2                          4                    2

The differential cost will be the diference in total cost for product b and c.

It is given in the assingment "additional cost of $24"

And the differential analysis prove it right.

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