Business, 25.11.2021 14:00 drey10

The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $2,100 per ton, and ingot can be sold without further processing for $1,050 per ton. Ingot is produced in batches of 90 tons by smelting 540 tons of bauxite, which costs $109 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.

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