Sell or Process Further

Abica Coffee Company produces Columbian coffee in batches of 5,900 pounds. The standard quantity of materials required in the process is 5,900 pounds, which cost $5.00 per pound. Columbian coffee can be sold without further processing for $6.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12.00 per pound. The processing into Decaf Columbian requires additional processing costs of $10,050 per batch. The additional processing will also cause a 4% loss of product due to evaporation.

Question Content Area

a. Prepare a differential analysis report for the decision to sell or process further.

a. Prepare a differential analysis report for the decision to sell or process further. Feedback Y Check My Work a. Follow Exhibit 10 in the text. For both products, subtract the costs from the revenues. Determine the differential b. Should Abica Coffee sell Columbian coffee or process further and sell Decaf Columbian? Yes, process further and sell decaf Columbian V b. Should Abica Cotfee sel columbian colfee or process further snd sell Decot Columbian? c. Detemine the price of Decar Columbian thet would cause neither an advantage nor a disadvantage for processing further and seling Decar Columbian. Found vour answer to the nearest cen per pound