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Question - Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.10 per pound and costs $14.55 per pound to produce. Product D would sell for $36.80 per pound and would require an additional cost of $9.65 per pound to produce.
What is the differential cost of producing Product D?
a. $9.65 per pound
b. $11.58 per pound
c. $7.72 per pound
d. $5.79 per pound
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