Chapter 25, Problem 25.12EX

a)

To determine

Differential Analysis: Differential analysis refers to the analysis of differential revenue that could be gained or differential cost that could be incurred from the available alternative options of business.

To Prepare: The differential analysis of Company RNSC on October 6, to decide whether to sell Regular Columbian or process it further to Decaf Columbian.

b)

To determine

To Explain: On the basis of differential analysis, to decide whether to sell Regular Columbian or process it further to Decaf Columbian.

c)

To determine

The price at which Decaf Columbian would cause neither advantage nor disadvantage for processing it further and selling the Decaf Columbian.