Hill Co.can further process Product O to produce Product P.Product O is currently selling for $65 per pound and costs $42 per pound to produce.Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce.The differential revenue of producing Product P is $82 per pound.

Question

Quizplus · Accepted Answer

The differential revenue of producing Product P is the difference between the selling price of Product P and Product O, which is $82 - $65 = $17 per pound, not $82 per pound.

Hill CoCan Further Process Product O to Produce Product P