Managerial Accounting: PR9-4A The management of Dominican Sugar Company is considering

Managerial Accounting
PR9-4A Differential Analysis for Further Processing
The management of Dominican Sugar Company is considering whether to process further raw sugar into refined sugar.
Refined sugar can be sold for $2.18 per pound, and raw sugar can be sold without further processing for $1.35 per pound.
Raw sugar is produced in batches of 42,500 pounds by processing 100,000 pounds of sugar cane, which costs $0.36 per pound of cane.
Refined sugar will require additional processing costs of $0.49 per pound of raw sugar, and 1.25 pounds of raw sugar will produce 1 pound of refined sugar.

Required:
1. Prepare a differential analysis as of January 30, 2014 to determine whether to sell raw sugar (Alternative 1) or process further into refined sugar (Alternative 2). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Briefly report your recommendations.