Venus Co Can Further Process Product X to Produce Product Y

Multiple Choice

Venus Co. can further process Product X to produce Product Y. Product X is currently selling for $18 per pound and costs $12.50 per pound to produce. Product Y would sell for $32 per pound and would require an additional cost of $8.75 per pound to produce. Based on the information provided for Venus Co., what is the differential cost of producing Product Y?

A) $32 per pound
B) $12.50 per pound
C) $14 per pound
D) $8.75 per pound