Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need to know C. Also, how is it calculated? I have tried the only way I know and I am not getting the
I just need to know C. Also, how is it calculated? I have tried the only way I know and I am not getting the correct answer.. Please explain.
eBook ell or Process Further bica Roast Coffee Company produces Columbian coffee in batches of 5,300 pounds. The standard quantity of materials required in the process is 5,300 pounds, which cost $4.00 per pound. Columbian coffee can be sold without further processing for 9.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additional processing costs of $9,750 per batch. The additional processing ill also cause a 4% loss of product due to evaporation. Hnts) a. Prepare a differential analysis dated August 28, 2014, on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) August 28, 2014 Sell Regular Columbian (Alternative 1) Process Further into Decaf Columbian (Alternative 2) Differential Effect on Income (Alternative 2) Revenues 49820 50880 1060 Costs 21200 30950 9750 Income (Loss) 28620 19930 -8690 Show All Feedback b. Should Abica Roast sell Columbian coffee or process further and sell Decaf Columbian? Sell 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 poundStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started