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

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  1. A = $25 - $10 = ?

    Additional to A's $10 per pound cost?

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

    Typo somewhere?

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