Process or Sell Product T is produced for $3.30 per pound. Product T can be sold without additional processing for $4.05 per pound or processed further into Product U at an additional cost of $0.44 per pound. Product U can be sold for $4.38 per pound.
a. Prepare a differential analysis dated November 15 on whether to sell T (Alternative 1) or process further into U (Alternative 2).
b. Should Product T be sold (Alternative 1) or processed further into Product U (Alternative 2)?
Select?
a. Sell Product T
b. Process further into Product U
c. Correct 1 of Item 2