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19 April, 17:33

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

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  1. 19 April, 18:00
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    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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