Sell or Process Further Zing 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 $4.00 per pound. Columbian coffee can be sold without further processing for $7.40 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 $11,850 per batch. The additional processing will also cause a 6% loss of product due to evaporation.

a. Prepare a differential analysis report for the decision to sell or process further. Zing Coffee Company Proposal to Process Columbian Coffee Further Differential Analysis Report Differential revenue from further processing per batch:

Revenue from sale of Decaf Columbian

Revenue from sale of Columbian coffee fill in the blank

4 Differential revenue $fill in the blank Differential cost per batch:

Additional cost of producing Decaf Columbian

Differential income from further processing Decaf Columbian per batch