Sell or Process Further

Rise N$$ Shine Coffee Company produces Columbian coffee in batches of $4,300$ pounds. The standard quantity of materials required in the process is $4,300$ pounds, which cost $$6$ 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 $$8,972$ per batch. The additional processing also causes a $5\%$ loss of product due to evaporation.

Question Content Area

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

b$.$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.