Abica Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $6 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 $12,633 per batch. The additional processing also causes a 5% loss of product due to evaporation.

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 0cb6d704dfdcfe8_1	$fill in the blank 0cb6d704dfdcfe8_2	$fill in the blank 0cb6d704dfdcfe8_3
Costs	fill in the blank 0cb6d704dfdcfe8_4	fill in the blank 0cb6d704dfdcfe8_5	fill in the blank 0cb6d704dfdcfe8_6
Income (Loss)	$fill in the blank 0cb6d704dfdcfe8_7	$fill in the blank 0cb6d704dfdcfe8_8	$fill in the blank 0cb6d704dfdcfe8_9

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a. For both products, subtract the costs from the revenues per batch. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2.

b. Should Abica sell Columbian coffee or process further and sell Decaf Columbian?

Sell ColumbianProcess into Decaf ColumbianProcess into Decaf Columbian

c. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian. Round your answer to two decimal places. $fill in the blank 82783ff6106ffd7_2 per pound