Question

Granger Co. can further process Product B to produce Product C. Product B is currently selling for $55 per pound and costs $42 per pound to produce. Product C would sell for $82 per pound and would require an additional cost of $13 per pound to produce. What is the differential revenue of producing and selling Product C?

a.$42 per pound

b.$15 per pound

c.$45 per pound

d.$27 per pound

Answer 1

Correct answer----------(d) $27 per pound

working

(A) Immidiate sale price	(B) Price after Further Processing	C=(B-A)Additional revenue
$               55.00	$              82.00	$               27.00