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The management of International Aluminum Co. is considering whether to process aluminum ingot further into...

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Accounting

The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $2,500 per ton, and ingot can be sold without further processing for $1,250 per ton. Ingot is produced in batches of 82 tons by smelting 500 tons of bauxite, which costs $102 per ton of bauxite. Rolled aluminum will require additional processing costs of $610 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum.
Required:
Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1) or process further into rolled aluminum (Alternative 2). If required, do not round interim calculations. If required, use a minus sign to indicate a loss.
Differential Analysis
Sell Ingot (Alt.1) or Process Further into Rolled Aluminum (Alt.2)
February 5
\table[[Line Item Description,\table[[Sell Ingot],[(Alternative 1)]],\table[[Process Further],[into Rolled Aluminum],[(Alternative 2)]],\table[[Differential Effects],[(Alternative 2)]]],[Revenues, Der batch,$,$,$
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