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Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 pounds, which cost

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Abica Coffee Company produces Columbian coffee in batches of 5,700 pounds. The standard quantity of materials required in the process is 5,700 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 $10,850 per batch. The additional processing will also cause a 6% loss of product due to evaporation. a. Prepare a differential analysis report for the decision to sell or process further. Abica Coffee Company Proposal to Process Columbian Coffee Further Differential Analysis Report Differential revenue from further processing per batch: Revenue from sale of Decaf Columbian Revenue from sale of Columbian coffee 47,880 Differential revenue Differential cost per batch: Additional cost of producing Decaf Columbian Differential income from further processing Decaf Columbian per batch A

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