Question

Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $26 per pound to produce. Product C would sell for $61 per pound and would require an additional cost of $22 per pound to produce. The differential cost of producing Product C is a.$22 per pound b.$34 per pound c.$61 per pound d.$26 per pound

Answer 1

a.$22 per pound

Step-by-step explanation:

The computation of the differential cost for producing product C is given below:

As we know that

Differential cost is the extra cost that to be incurred for producing or generating the product.

Since in the question it is given that there is an additional cost of $22 per pound so the same would be considered

hence, the option a is correct