grace co. can further process product b to produce product c. product b is currently selling for $60 per pound and costs $38 per pound to produce. product c would sell for $95 per pound and would require an additional cost of $13 per pound to produce. what is the differential revenue of producing and selling product c?

Respuesta :

The difference in revenue between making and selling article c is $35 per pound.

What does a company's revenue mean?

The amount generated by sales for your company each year, minus expenditures and expenses, is what is referred to as annual revenue. The number of each goods you sold is multiplied by its purchase price, and the sum of the yearly sales of each product yields your gross annual turnover.

Briefing:

The computation of the differential revenue of producing and selling Product C is shown below:

= Revenue arise from selling the product C - Revenue arise from selling the product B

= $95 per pound - $60 per pound

= $35 per pound

By deducting the revenue of Product B from the revenue of product C we can get the differential revenue.

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