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undefined Zing Coffee Company produces Columbian coffee in batches of 5,300 pounds. The standard quantity of materials required in the process is 5,300 pounds, which

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Zing Coffee Company produces Columbian coffee in batches of 5,300 pounds. The standard quantity of materials required in the process is 5,300 pounds, which cost $6.00 per pound. Columbian coffee can be sold without further processing for $6.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additional processing costs of 513,850 per batch. The additional processing will also cause a 5% loss of product clue lo 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 50.350 Revenue from sale of Columbian coffee 33,920 Differential revenue 16,130 Differential cost per batch: Additional cost of producing Decaf Columbian 13,850 Differential income from further processing Decaf Columbian per batch 2,580 Feedback Check My Work a. Follow Exhibit 10 in the text. For both products, subtract the costs from the revenues. Determine the differential effect on the revenues, costs, and income (loss). b. Should Zing Coffee sell Columbian coffee or process further and sell Decaf Columbian? Yes, process further and sell 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 the nearest cent. X per pound

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