Zing Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of materials required in the process is 6,500 pounds, which cost $5 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 $13,377 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 must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2)October 6 Sell Regular Columbian (Alternative 1) Process Further into Decaf Columbian (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank c2aeaefe403a049_1 $fill in the blank c2aeaefe403a049_2 $fill in the blank c2aeaefe403a049_3 Costs fill in the blank c2aeaefe403a049_4 fill in the blank c2aeaefe403a049_5 fill in the blank c2aeaefe403a049_6 Income (Loss) $fill in the blank c2aeaefe403a049_7 $fill in the blank c2aeaefe403a049_8 $fill in the blank c2aeaefe403a049_9
Zing Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of materials required in the process is 6,500 pounds, which cost $5 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 $13,377 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 must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2)October 6 Sell Regular Columbian (Alternative 1) Process Further into Decaf Columbian (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank c2aeaefe403a049_1 $fill in the blank c2aeaefe403a049_2 $fill in the blank c2aeaefe403a049_3 Costs fill in the blank c2aeaefe403a049_4 fill in the blank c2aeaefe403a049_5 fill in the blank c2aeaefe403a049_6 Income (Loss) $fill in the blank c2aeaefe403a049_7 $fill in the blank c2aeaefe403a049_8 $fill in the blank c2aeaefe403a049_9
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zing Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of materials required in the process is 6,500 pounds, which cost $5 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
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 must enter subtracted or negative numbers use a minus sign.
| Sell Regular Columbian (Alternative 1) |
Process Further into Decaf Columbian (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
| Revenues | $fill in the blank c2aeaefe403a049_1 | $fill in the blank c2aeaefe403a049_2 | $fill in the blank c2aeaefe403a049_3 |
| Costs | fill in the blank c2aeaefe403a049_4 | fill in the blank c2aeaefe403a049_5 | fill in the blank c2aeaefe403a049_6 |
| Income (Loss) | $fill in the blank c2aeaefe403a049_7 | $fill in the blank c2aeaefe403a049_8 | $fill in the blank c2aeaefe403a049_9 |
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