Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether...
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Differential Analysis for Further Processing
The management of International Aluminum Co is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $ per
ton, and ingot can be sold without further processing for $ per ton. Ingot is produced in batches of tons by smelting tons of bauxite, which costs $ per ton of
bauxite. Rolled aluminum will require additional processing costs of $ per ton of ingot, and tons of ingot will produce ton of rolled aluminum.
Required:
Prepare a differential analysis as of February to determine whether to sell aluminum ingot Alternative or process further into rolled aluminum Alternative If
required, do not round interim calculations. If required, use a minus sign to indicate a loss.
Differential Analysis
Sell Ingot Alt or Process Further into Rolled Aluminum Alt
February
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