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Zing Coffee Company produces Columbian colfee in batches of 5,100 pounds. The standard quantity of materials required in the process is 5,100 poundt, which cose

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Zing Coffee Company produces Columbian colfee in batches of 5,100 pounds. The standard quantity of materials required in the process is 5,100 poundt, which cose 56,00 per pound. Columbian cotfee can be cold without further processing for $8.40 per pound. Columbian colfee can aiso be processed further to yield Decaf Columbian, which can be sold for $10.00 per pound. The processing into Decaf Columbian requires additicnal processing costs of $13,750 per batch. The additional procesting will also cause a 6% loss of product due to evaporation. a. Prepare a differential analvsis report for the decition to sell or process further. Fermant " Chea ve wor a. Follow tixtibit 10 in the text, for beth products, subtract the costs from the revenues. Delermine the differential elfect on the revenues, costs, and income (iont). b. Should zing Colfee sell Columbian cotfee of process further and sell Decaf Columbian? c. Determine the price of Decat Columbian that would cause neither an advantage nor a disadvantage for peoceseing further and sellieg Decaf Columbian, Round vour answer to the nearest cent. 1 per pound

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