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Abica Coffee Company produces Columbian coffee in batches of 5 , 0 0 0 pounds. The standard quantity of materials required in the process is

Abica Coffee Company produces Columbian coffee in batches of 5,000 pounds. The standard quantity of materials required in the process is 5,000 pounds, which cost $4.00 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 $14,250 per batch. The additional processing will also cause a 4% loss of product due to evaporation.
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