Question

Grace Co. can further process Product B to produce Product C. Product B is currently selling for $22 per pound and costs $14 per pound to produce. Product C would sell for $38 per pound and would require an additional cost of $9 per pound to produce. The differential revenue of producing and selling Product C is____________.

Answer 1

The differential revenue of selling and producing product C is $16 per pound

Step-by-step explanation:

in this question , we are asked to determine the differential revenue of producing and selling product C .

To calculate this value, we can use a mathematical approach;

Differential revenue = Selling price of product C - Selling price of product B

From the question, we can identify that the selling price of product C is $38 per pound

Selling price of product B is $22 per pound

The differential revenue is = 38 - 22 = $16 per pound