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Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to...

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Accounting

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Differential Analysis for Further Processing The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $2,400 per ton, and ingot can be sold without further processing for $1,200 per ton. Ingot is produced in batches of 90 tons by smelting 500 tons of bauxite, which costs $100 per ton of bauxite. Rolled aluminum will require additional processing costs of $630 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum. Required: 1. Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1) or process further into rolled aluminum (Aiternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss: Differential Analysis Sell Ingot ( Alt, 1) or Process Further into Rolled Aluminum (Alt. 2) February 5 2. International Aluminum Co. process aluminum ingot furthes, rather than sell aluminum ingot because profits would be 1 mare Check My Work uses remahing

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