Grace co. can further process product b to produce product c. product b is currently selling for $21 per pound and costs $14 per pound to produce. product c would sell for $42 per pound and would require an additional cost of $11 per pound to produce. what is the differential revenue of producing and selling product c? a.$21 per poundb.$31 per poundc.$28 per poundd.$42 per pound

Differential revenue  = $21 per pound

so here correct option is a.$21 per pound

Explanation:

given data

Product B

currently selling = $21 per pound

costs =  $14 per pound

Product C

sell = $42 per pound

additional cost = $11 per pound

to find out

differential revenue of producing and selling Product C

solution

we get here differential revenue that is express as  

Differential revenue = selling price product C  -  selling price product B   1

put here value we get

Differential revenue = $42 - $21

Differential revenue  = $21 per pound

so here correct option is a.$21 per pound

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