1. Sell or Process Further

   Rise N Shine Coffee Company produces Columbian coffee in batches of 5,600 pounds. The standard quantity of materials required in the process is 5,600 pounds, which cost $4 per pound. Columbian coffee can be sold without further processing for $8.4 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10 per pound. The processing into Decaf Columbian requires additional processing costs of $8,450 per batch. The additional processing will also cause a 6% 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).

   Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6

   	Sell Regular Columbian (Alternative 1)	Process Further into Decaf Columbian (Alternative 2)	Differential Effect on Income (Alternative 2)
   Revenues	$fill in the blank 66b238fcd001ffd_1	$fill in the blank 66b238fcd001ffd_2	$fill in the blank 66b238fcd001ffd_3
   Costs	fill in the blank 66b238fcd001ffd_4	fill in the blank 66b238fcd001ffd_5	fill in the blank 66b238fcd001ffd_6
   Income (Loss)	$fill in the blank 66b238fcd001ffd_7	$fill in the blank 66b238fcd001ffd_8	$fill in the blank 66b238fcd001ffd_9

   b. Should Rise N Shine sell Columbian coffee or process further and sell Decaf Columbian?

   Sell ColumbianProcess 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. $fill in the blank 81005b06f000fe7_2 per pound