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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
Star Coffee Company produces Colombian Coffee in batches of pounds. The standard quantity of materials required in the process are pounds, which cost $ per pound. Colombian coffee can be sold without further process for $ per pound. Colombian coffee can also be processed further to yield Decaf Colombian which can be sold for $ per pound. The processing into Decaf Colombian requires additional processing costs of $ per batch. The additional processing will also cause a 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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