Nachos Co.can further process Product J to produce Product D.Product J is currently selling for $12 per pound and costs $9 per pound to produce.Product D would sell for $20 per pound and would require an additional cost of $5 per pound to produce.What is the differential cost of producing Product D?
A)$9 per pound
B)$14 per pound
C)$5 per pound
D)$3 per pound

Question

Quizplus · Accepted Answer

The differential cost is the additional cost incurred to process Product J into Product D, which is $5 per pound.

Nachos CoCan Further Process Product J to Produce Product D