Grace Co Can Further Process Product B to Produce Product C

question 64

Multiple Choice

Grace Co. can further process Product B to produce Product C. Product B is currently selling for $60 per pound and costs $38 per pound to produce. Product C would sell for $95 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) $35 per pound
• B) $38 per pound
• C) $95 per pound
• D) $60 per pound

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Definitions:

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