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Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15.00 per pound to produce. Product D would sell for $44.55 per pound and would require an additional cost of $11.75 per pound to produce. The differential cost of producing Product D is

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Answer:

$20.75

Explanation:

Calculation to determine what The differential cost of producing Product D is

Using this formula

Differential cost =Revenue from sale of product D−Revenue from sale of product J

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Let plug in the formula

Differential cost ​=$44.55−$23.80

Differential cost =$20.75

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Therefore The differential cost of producing Product D is $20.75

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