Partridge Co. can further process Product J to produce Product D Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $38 per pound and would require an additional cost of $9.25 per pound to produce.
What is the differential revenue of producing Product D?
A) $6.75 per pound
B) $9.25 per pound
C) $17 per pound
D) $5.25 per pound

Question

Quizplus · Accepted Answer

The differential revenue is the difference in selling prices between Product D and Product J, which is $38 - $21 = $17 per pound.