The management of Dominican Sugar Company is considering whether to process further raw sugar into refined sugar. Refined sugar can be sold for $2.24 per pound, and raw sugar can be sold without further processing for $1.25 per pound. Raw sugar is produced in batches of 34,800 pounds by processing 87,000 pounds of sugar cane, which costs $0.31 per pound of cane. Refined sugar will require additional processing costs of $0.47 per pound of raw sugar, and 1.20 pounds of raw sugar will produce 1 pound of refined sugar. Required: Question Content Area 1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2). If required, do not round interim calculations. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Raw Sugar (Alt. 1) or Process Further into Refined Sugar (Alt. 2)March 24 Sell Raw Sugar (Alternative 1) Process Further into Refined Sugar (Alternative 2) Differential Effects (Alternative 2) Revenues, per batch $fill in the blank f4ddd404e077039_1 $fill in the blank f4ddd404e077039_2 $fill in the blank f4ddd404e077039_3 Costs, per batch fill in the blank f4ddd404e077039_4 fill in the blank f4ddd404e077039_5 fill in the blank f4ddd404e077039_6 Profit (loss), per batch $fill in the blank f4ddd404e077039_7 $fill in the blank f4ddd404e077039_8 $fill in the blank f4ddd404e077039_9 Question Content Area 2. Dominican Sugar Company process raw sugar further to produce refined sugar, because profits would be

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 4PA

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Question Content Area

1. Prepare a differential analysis as of March 24 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2). If required, do not round interim calculations. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential AnalysisSell Raw Sugar (Alt. 1) or Process Further into Refined Sugar (Alt. 2)March 24

	Sell Raw Sugar (Alternative 1)	Process Further into Refined Sugar (Alternative 2)	Differential Effects (Alternative 2)
Revenues, per batch	$fill in the blank f4ddd404e077039_1	$fill in the blank f4ddd404e077039_2	$fill in the blank f4ddd404e077039_3
Costs, per batch	fill in the blank f4ddd404e077039_4	fill in the blank f4ddd404e077039_5	fill in the blank f4ddd404e077039_6
Profit (loss), per batch	$fill in the blank f4ddd404e077039_7	$fill in the blank f4ddd404e077039_8	$fill in the blank f4ddd404e077039_9

Question Content Area

2. Dominican Sugar Company

process raw sugar further to produce refined sugar, because profits would be

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Decision to Sell before or after additional processing

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