Book Sell or Process Further Dakota Coffee Company produces Columbian coffee in batches of 7,500 pounds. The standard quantity of materials required in the process is 7,500 pounds, which cost $6.00 per pound. Columbian coffee can be sold without further processing for $9.80 per pound. Columbia also be processed further to yield Decaf Columbian, which can be sold for $11.60 per pound. The processing into Decaf Columbian requires additional processing costs of $6,300 per batch. The additional processing will also cause a 5% loss of product due to evaporation. a. Prepare a differential analysis dated December 11 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). If required, use a minus sign to indicate a loss. Differential Analysis Sell Regular (Alt. 1) or Process Further into Decaf (Alt. 2) Revenues Costs Profit (Loss) Fondback December 11 Sell Regular Process Further into Decaf Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Check My Work a. For both products, subtract the costs from the revenue per batch. Determine the differential effect on income of the revenues, costs, and profit (loss) by subtracting alternative 1 from alternative 2. b. Should Dakota Coffee Company sell Columbian coffee or process further and sell Decaf Columbian? Process further 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. per pound Feedback Check My Work b. Which alternative has the most desirable effect on income? c. Divide the net advantage of further processing by the volume of Decaf Columbian and subtract the result from $11.60. Fondback