Grace Co. can further process Product B to produce Product C. Product B is currently selling for $24 per pound and costs $15 per pound to produce. Product C would sell for $42 per pound and would require an additional cost of $11 per pound to produce. What is the differential revenue of producing and selling Product C? a.$27 per pound b.$42 per pound c.$31 per pound d.$18 per pound 2) Stryker Industries received an offer from an exporter for 28,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: What is the differential cost from the acceptance of the offer? a.$504,000 b.$672,000 c.$140,000 d.$280,000 3) The amount of income that would result from an alternative use of cash is called: a.sunk cost b.differential revenue c.opportunity cost d.differential income Domestic unit sales price$24Unit manufacturing costs: Variable10 Fixed5
Grace Co. can further process Product B to produce Product C. Product
Grace Co. can further process Product B to produce Product C. Product B is currently selling for $24 per pound and costs $15 per pound to produce. Product C would sell for $42 per pound and would require an additional cost of $11 per pound to produce. What is the differential revenue of producing and selling Product C? a.$27 per pound b.$42 per pound c.$31 per pound d.$18 per pound 2) Stryker Industries received an offer from an exporter for 28,000 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data is available: What is the differential cost from the acceptance of the offer? a.$504,000 b.$672,000 c.$140,000 d.$280,000 3) The amount of income that would result from an alternative use of cash is called: a.sunk cost b.differential revenue c.opportunity cost d.differential income Domestic unit sales price$24Unit manufacturing costs: Variable10 Fixed5
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