#7 Test Managerial Accounting December 9, 2017 1. Jones Co. can fiurther process

Question

#7 Test Managerial Accounting December 9, 2017 1. Jones Co. can fiurther process Product B to produce Product C. Product B is currently selling 30 per pound and costs $28 per pound to produce. Product C would sell for S60 per pound ar require an additional cost of $24 per pound to produce. What is the differential cost of producing Product C? a $30 per pound b. $24 per pound c. $28 per pound d $60 per pound 8. A business received an offer from an exporter for 10,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available Domestic unit sales price $20 Unit manufacturing costs: Variable 13 Fixed

Explanation / Answer

the correct option is b $24.

as to produce the product C additional $24 required to be incurred

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