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Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $21.20 per pound and costs $16.90 per pound to produce. Product D would sell for $40.55 per pound and would require an additional cost of $11.80 per pound to produce.
Problem 1: The differential cost of producing Product D is
a. $14.16 per poundb. $7.08 per poundc. $9.44 per poundd. $11.80 per pound
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