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Mocha Melt purchases and roasts high-quality, whole-bean coffees, its hallmark, and sells them, along with other coffee-related products primarily through its company-operated retail stores. Suppose
Mocha Melt purchases and roasts high-quality, whole-bean coffees, its hallmark, and sells them, along with other coffee-related products primarily through its company-operated retail stores. Suppose that the quality control manager at Mocha Melt discovered a 900-pound batch of roasted beans that did not meet the company's quality standards. Company policy would not allow such beans to be sold with the Mocha Melt name on them. However, they could be reprocessed, at which time they could be sold by Mocha Melt's retail stores, or they could be sold as is on the wholesale coffee bean market. (Click the icon to view the additional information.) i Requirements 1. Should Mocha Melt sell the beans on the market as is for $3.60 per pound, or should the company reprocess the beans and sell them through its own retail stores? Why? 2. Compute the amount of extra profit Mocha Melt earns from the alternative you selected in number 1 compared to what it would earn from the other alternative. 3. What cost numbers in the problem were irrelevant to your analysis? Explain why they were irrelevant. Requirement 2. Compute the amount of extra profit Mocha Melt earns from the alternative you selected in number 1 compared to what it would earn from the other alternative. Mocha Melt would earn an additional $ in profit from the alternative chosen in requirement 1. Requirement 3. What cost numbers in the problem were irrelevant to your analysis? Explain why they were irrelevant Relevant items are Based on the definition of relevant data, the following items are irrelevant to the analysis in requirement 1. (Select all that apply. Leave any unused cells blank.) Requirement 2. Compute the amount of extra profit Mocha Melt earns from the alternative you selected in number 1 compared to what it would earn from the other alternative. Mocha Melt would earn an additional $ in profit from the alternative chosen in requirement 1. Requirement 3. What cost numbers in the problem were irrelevant to your analysis? Explain why they were irrelevant. Relevant items are rement 1. (Select all Based on the definit that apply. Leave ar past costs and revenues past costs and revenues that differ among alternatives. predicted future costs and revenues. predicted future costs and revenues that differ among alternatives. Mocha Melt purchases and roasts high-quality, whole-bean coffees, its hallmark, and sells them, along with other coffee-related products primarily through its company-operated retail stores. Suppose that the quality control manager at Mocha Melt discovered a 900-pound batch of roasted beans that did not meet the company's quality standards. Company policy would not allow such beans to be sold with the Mocha Melt name on them. However, they could be reprocessed, at which time they could be sold by Mocha Melt's retail stores, or they could be sold as is on the wholesale coffee bean market. (Click the icon to view the additional information.) i Requirements 1. Should Mocha Melt sell the beans on the market as is for $3.60 per pound, or should the company reprocess the beans and sell them through its own retail stores? Why? 2. Compute the amount of extra profit Mocha Melt earns from the alternative you selected in number 1 compared to what it would earn from the other alternative. 3. What cost numbers in the problem were irrelevant to your analysis? Explain why they were irrelevant. Requirement 2. Compute the amount of extra profit Mocha Melt earns from the alternative you selected in number 1 compared to what it would earn from the other alternative. Mocha Melt would earn an additional $ in profit from the alternative chosen in requirement 1. Requirement 3. What cost numbers in the problem were irrelevant to your analysis? Explain why they were irrelevant Relevant items are Based on the definition of relevant data, the following items are irrelevant to the analysis in requirement 1. (Select all that apply. Leave any unused cells blank.) Requirement 2. Compute the amount of extra profit Mocha Melt earns from the alternative you selected in number 1 compared to what it would earn from the other alternative. Mocha Melt would earn an additional $ in profit from the alternative chosen in requirement 1. Requirement 3. What cost numbers in the problem were irrelevant to your analysis? Explain why they were irrelevant. Relevant items are rement 1. (Select all Based on the definit that apply. Leave ar past costs and revenues past costs and revenues that differ among alternatives. predicted future costs and revenues. predicted future costs and revenues that differ among alternatives
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