(Solved):Win Co. can further process Product J to produce Product D. Product J is currently selling for…

 

Question

Win Co. can further process Product J to produce Product D. Product J is currently selling for $24.00 per pound and costs $16.00 per pound to produce. Product D would sell for $46.00 per pound and would require an additional cost of $9.00 per pound to produce. Determine the differential revenue of producing Product D.

Select the correct answer.

A. $30.00 per pound

B. $22.00 per pound

C. $46.00 per pound

D. $37.00 per pound

 

EXPERT

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