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which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additional processing costs of $13,950 per batch. The additional processing will
which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additional processing costs of $13,950 per batch. The additional processing will also cause a 5% loss of product due to evaporation. a. Prepare a differential analysis report for the decision to sell or process further. Feedback Theck 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). Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian. Round your nswer to the nearest cent. per pound Feedback - Check My Work b. Consider which alternative has the most desirable effect on income. c. Divide the net advantage of further processing by the volume of decaf Columbian
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