1.
Concept introduction:
Differential analysis:
Differential analysis is a method of calculating the difference in the revenue and cost due to different alternates. It calculates the net profit by considering the differential revenue and costs in different projects. Therefore, it is a important matrix in the decision making regarding investment options.
Requirement 1:
Calculate the financial advantage of processing the product further.
2.
Concept introduction:
Differential analysis:
Differential analysis is a method of calculating the difference in the revenue and cost due to different alternates. It calculates the net profit by considering the differential revenue and costs in different projects. Therefore, it is a important matrix in the decision making regarding investment options.
Requirement 2:
Ascertain the product that should be processed further.
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