# Math

Carmike Company can further process Product A to produce Product B. Product A is currently selling for \$25 per pound and costs \$10 per pound to produce. Product B would sell for \$32 per pound and would require an additional cost of \$10 per pound to produce. What is the differential cost of producing Product B, and should the company further process Product A into Product B?

A. \$20 per pound, Yes
B. \$20 per pound, No
C. \$10 per pound, Yes
D. \$10 per pound, No

1. 👍 0
2. 👎 0
3. 👁 205
1. A = \$25 - \$10 = ?

Additional to A's \$10 per pound cost?

B = \$32 - \$10 - \$10 = ?

Typo somewhere?

1. 👍 0
2. 👎 0

## Similar Questions

1. ### accounting

a drug company has a monopoly on a new patented medicine. the product made in either of two plants the cost of production for the two plants are MC1=10+2Q1 and MC2=25+5*Q2. the firms estimate of demand for the product is

asked by lety on January 29, 2018
2. ### Math

A company manufactures x units of Product A and y units of Product B, on two machines, I and II. It has been determined that the company will realize a profit of \$3/unit of Product A and a profit of \$6/unit of Product B. To

asked by Jay on June 3, 2015
3. ### CVP Analysis - Business Math

Engineering estimates show that the variable cost of manufacturing a new product will be \$35 per unit. Based on market research, the selling price of the product is to be \$120 per unit and variable selling expense is expected to

asked by Steph on October 16, 2012
4. ### Entrepreneurship

1. If a product becomes more easily available, what is likely to happen? A) The product will get more competitors. B) The cost of making the product will increase. C) The product will become a consumer good. D) The price will go

asked by Tim on December 14, 2015
5. ### economics

a firm is planning to manufacture a new product. the sales department estimates the quanity that can be sold depends on the selling price. as the selling price is increased, the quantity that can be sold decreases. they estimate:

asked by jen on April 7, 2009
1. ### math

Hi There- I really need help with this. I'm kind of confused and don't have an answer. if you could explain it ill give you my answer once I understand it. how does the product of a fraction and a whole number compare to the whole

asked by Tanner on December 19, 2018
2. ### Math

A company’s profit is described by the equation P(x) = – 5x^2 + 300x + 15,000 where x is the price in dollars that the company charges for its product. What should the company charge for the product to generate the maximum

asked by Anonymous on February 4, 2014

A company makes three products X, Y and Z. Each product requires processing by three machines A, B and C. The time required to produce one unit of each product is shown below. Product X:- Machine A: 1 Machine B: 2 Machine C: 2

asked by kIM on July 11, 2011
4. ### Linear Programming

We produce two products: product 1 and product 2 on two machines (machine 1 and machine 2). The number of hours of machine time and labor depends on the machine and the product as shown in Table 64. The cost of producing a unit of

asked by AB on September 12, 2014
5. ### Microeconomics

5. A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The costs of production for the two plants are MC1 = 20 + 2Q1, and MC2 = 10 + 5Q2. The firm’s estimate of the demand

asked by Dana on April 22, 2010
6. ### Managerial Economics

Soft selling occurs when a buyer is skeptical of the quality or usefulness of a product or service. For example, suppose you’re trying to sell a company a new accounting system that will reduce costs by 10%. Instead of asking

asked by Jutee on May 20, 2015