=+Golden Roast Coffee Company produces Colombian coffee in batches of 7,700 pounds. The standard quantity ofmaterials required in the process is 7,700 pounds, which cost $5.00 per pound. Colombian coffee can be sold without further processing for $8.90 per pound.

Colombian coffee can also be processed further to yield DecafColombian, which can be sold for $11.60 per pound. The processing into DecafColombian requires additional processing costs of $18,326 per batch. The additional processing will also cause a 6% loss ofproduct due to evaporation.