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Blair Designs produces 4,000 yards of Solid Fabric per batch, which sells for $5 per...

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Accounting

Blair Designs produces 4,000 yards of Solid Fabric per batch, which sells for $5 per yard. Each batch of Solid Fabric produced incurs $12,000 of costs. The company can incur an additional $3,000 in costs to process the batch of Simple Fabric into 2,400 yards of Patterned Fabric, which sells for $12 per yard. Prepare a differential analysis to determine if the company should sell Solid Fabric (Alternative 1) or process further into Patterned Fabric (Alternative 2).

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