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Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,100 pounds. The standard quantity of materials required in the process is
Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,100 pounds. The standard quantity of materials required in the process is 6,100 pounds, which cost $5 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 $12,264 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. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Sell Further into Differential Regular Decaf Effect Columbian on Income Columbian (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) b. Should Abica sell Columbian coffee or process further and sell Decaf Columbian? c. Determine the price of Decaf Columbian that would cause neither an advantage nora disadvantage for processing further and selling Decaf Columbian. Round your answer to two decimal places, per pound
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