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Nachos Co Can Further Process Product J to Produce Product D

Question 21

Multiple Choice

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

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