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Star Coffee Company produces Colombian Coffee in batches of 5 , 0 0 0 pounds. The standard quantity of materials required in the process are

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Star Coffee Company produces Colombian Coffee in batches of 5,000 pounds. The standard quantity of materials required in the process are 5,000 pounds, which cost $5.00 per pound. Colombian coffee can be sold without further process for $8.40 per pound. Colombian coffee can also be processed further to yield Decaf Colombian which can be sold for $9.60 per pound. The processing into Decaf Colombian requires additional processing costs of $8,420 per batch. The additional processing will also cause a 5% loss of product due to evaporation.
Prepare a differential analysis report for the decision to sell or process further.
Should Star sell Colombian coffee or process further and sell Decaf Colombian?
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