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Business, 22.12.2021 02:20 romanlittlewood

The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $2, 200 per ton, and ingot can be sold without further processing for $1, 100 per ton. Ingot is produced in batches of 80 tons by smelting s500 tons of bauxite, which costs s105 per ton of bauxite. Rolled aluminum will require ad processing costs of $620 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum (due to trim al losses) Required: Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1) or process further into rolled aluminum (Alternative 2) Follow Example Exercise 25-5 For both products, subtract the costs from the revenues per ton Determine the differential effect on income of the revenues, costs, and income (loss)

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