Carmen Co Can Further Process Product J to Produce Product D

Multiple Choice

Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75 per pound to produce. Product D would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce.
What is the differential cost of producing Product D?

A) $6.50 per pound
B) $8.55 per pound
C) $17.00 per pound
D) $5.25 per pound