Green Co. incurs a cost of $15 per pound to produce product X, which it sells for $26 per pound. The company can further process product X to produce product Y. Product Y would sell for $30 per pound and would require an additional cost of $10 per pound to be produced.
The differential cost of producing product Y is:
a) $15 per pound
b) $26 per pound
c) $10 per pound
d) $30 per pound
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