Green Co.incursa cost of $15 per pound to produce Product X, which it sells for $26 per pound.The company can further process Product X to produce Product Y.Product Y would sell for $30 per pound and would require an additional cost of $10 per pound to be produced.The differential cost of producing Product Y is _____.
A) $30 per pound
B) $15 per pound
C) $26 per pound
D) $10 per pound

Question

Quizplus · Accepted Answer

The differential cost of producing Product Y is the additional cost required to produce it compared to the cost of producing Product X. Therefore, the differential cost of producing Product Y is $10 per pound.

Green CoIncursa Cost of $15 Per Pound to Produce Product X