Sell or Process FurtherZing Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $8.40 per pound. Columbian coffee can also beprocessed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additionalprocessing costs of $12,650 per batch. The additional processing will also cause a 4% loss of product due to evaporation.a. Prepare a differential analysis report for the decision to sell or process further.Zing Coffee CompanyProposal to Process Columbian Coffee FurtherDifferential Analysis ReportDifferential revenue from further processing per batch:Revenue from sale of Decaf Columbian<Revenue from sale of Columbian coffeeDifferential revenueDifferential cost per batch:Additional cost of producing Decaf ColumbianDifferential income from further processing Decaf Columbian per batchFeedback000 Zing Coffee CompanyProposal to Process Columbian Coffee FurtherDifferential Analysis ReportDifferential revenue from further processing per batch:Revenue from sale of Decaf ColumbianRevenue from sale of Columbian coffeeDifferential revenueDifferential cost per batch:Additional cost of producing Decaf ColumbianDifferential income from further processing Decaf Columbian per batchFeedbackCheck My Worka. Follow Exhibit 10 in the text. For both products, subtract the costs from the revenues. Determine the differential effect on therevenues, costs, and income (loss).b. Should Zing Coffee sell Columbian coffee or process further and sell Decaf Columbian?Yes, process further and sell decaf Columbianc. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling DecafColumbian. Round your answer to the nearest cent.per pound

Name: Sell or Process FurtherZing Coffee Company produces Columbian coffee
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Description: Sell or Process FurtherZing Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600pounds, which cost $5.00 per pound. Columbian coffee can be sold without further proc

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Zing Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $8.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $12,650 per batch. The additional processing will also cause a 4% loss of product due to evaporation. a. Prepare a differential analysis report for the decision to sell or process further

Zing Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $8.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $12,650 per batch. The additional processing will also cause a 4% loss of product due to evaporation. a. Prepare a differential analysis report for the decision to sell or process further

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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