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Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 4,200 pounds. The standard quantity of materials required in the process is
Sell or Process Further Zing Coffee Company produces Columbian coffee in batches of 4,200 pounds. The standard quantity of materials required in the process is 4,200 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 $8,524 per batch. The additional processing also causes a 5% loss of product due to evaporation a. Prepare a clutterentlal analysis dated October 6 on whether to sell regular Columbian (Alternative 19 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 Decal Columbian (Alt. 2) October 6 Process Sell Further into Differential Regular Effect Decal Columbian Columbian on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) 8 b. Should Zing sell Columbian coffee or process further and sell Decaf Columbian? Process 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 per pound e
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