Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 4,300 pounds. The standard quantity of materials required in the process is 4, 300 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $8,972 per batch. The additional processing also causes a 5% loss of product due to evaporation. Question Content Area a. Prepare a differential analysis dated October 6 on whether to Sell Regular Columbian (Alternative 1) or Process Further into Decaf Columbian (Alternative 2). For those boxes in which you b. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian. Round your answer to two decimal places. 0 Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Further into Sell Decaf Regular Differential Columbian Columbian Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues 38,700 ✔ Costs Profit (loss)
Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 4,300 pounds. The standard quantity of materials required in the process is 4, 300 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $8,972 per batch. The additional processing also causes a 5% loss of product due to evaporation. Question Content Area a. Prepare a differential analysis dated October 6 on whether to Sell Regular Columbian (Alternative 1) or Process Further into Decaf Columbian (Alternative 2). For those boxes in which you b. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian. Round your answer to two decimal places. 0 Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Further into Sell Decaf Regular Differential Columbian Columbian Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues 38,700 ✔ Costs Profit (loss)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 4,300 pounds. The
standard quantity of materials required in the process is 4, 300 pounds, which cost $6 per pound. Columbian coffee can
be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf
Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing
costs of $8,972 per batch. The additional processing also causes a 5% loss of product due to evaporation. Question
Content Area a. Prepare a differential analysis dated October 6 on whether to Sell Regular Columbian (Alternative 1) or
Process Further into Decaf Columbian (Alternative 2). For those boxes in which you b. Determine the price of Decaf
Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf
Columbian. Round your answer to two decimal places.
0
Differential Analysis
Sell Regular Columbian (Alt. 1) or Process Further into
Decaf Columbian (Alt. 2)
October 6
Process
Further into
Sell
Decaf
Regular
Differential
Columbian
Columbian
Effects
(Alternative 2)
(Alternative 1)
(Alternative 2)
Revenues
38,700 ✔
Costs
Profit (loss)
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