Please answer in text form without image Sell or Process FurtherAbica Coffee Company produces Columbian coffee in batches of 6,300 pounds. The standard quantity of materials required in the process is 6,300 pounds, which cost$5 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian,which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $12,906 per batch. The additional processing alsocauses a 5% loss of product due to evaporation.a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). Forthose boxes in which you must enter subtracted or negative numbers use a minus signDifferential AnalysisSell Regular Columbian (Alt. 1) or Process Further into DecafColumbian (Alt. 2)October 6RevenuesCostsIncome (Loss)FoodbackSellRegularColumbian(Alternative 1)56,700ProcessFurther intoDecafColumbian(Alternative 2)DifferentialEffecton Income(Alternative 2)Check My Wora For both products, subtract the costs from the revenues per batch. Determine the differential effect on income of the revenues, costs and income (oss) by subtracting aftemativefrom alternative 2PreviousNext

Sell Or Process Further Means Management Can Use Differential Analysis To Decide Whether To Process…

Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,300 pounds. The standard quantity of materials required in the process is 6,300 pounds, which $5 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbia which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $12,906 per batch. The additional processing a causes a 5% loss of product due to evaporation.

Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,300 pounds. The standard quantity of materials required in the process is 6,300 pounds, which $5 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbia which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $12,906 per batch. The additional processing a causes a 5% loss of product due to evaporation.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 12E: Sell or process further Dakota Coffee Company produces Columbian coffee in batches of 7,500 pounds....

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Sell or process further Dakota Coffee Company produces Columbian coffee in batches of 7,500 pounds. The standard quantity of materials required in the process is 7,500 pounds, which cost 6.00 per pound. Columbian coffee can be sold without further processing for 9.80 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for 11.60 per pound. The processing into Decaf Columbian requires additional processing costs of 6,300 per batch. The additional processing will also cause a 5% loss of product due to evaporation. a. Prepare a differential analysis dated December 11 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). b. Should Dakota Coffee Company sell Columbian coffee or process further and sell Decaf Columbian? Explain. c. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian.
Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?
Dakota Coffee Company produces Columbian coffee in batches of 7,500 pounds. The standard quantity of materials required in the process is 7,500 pounds, which cost $6.00 per pound. Columbian coffee can be sold without further processing for $9.80 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.60 per pound. The processing into Decaf Columbian requires additional processing costs of $6,300 per batch. The additional processing will also cause a 5% loss of product due to evaporation. a. Prepare a differential analysis dated December 11 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). If required, use a minus sign to indicate a loss.
Rise N’ Shine Coffee Company produces Columbian coffee in batches of 4,000 pounds. The standard quantity of materials required in the process is 4,000 pounds, which cost $5.73 per pound. Columbian coffee can be sold without further processing for $9.02 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.60 per pound. The processing into Decaf Columbian requires additional processing costs of $7,012 per batch. The additional processing will also cause a 5% loss of product due to evaporation. Required: a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. b. Should Rise N’ Shine sell Columbian coffee or process further…
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Abica Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $12,462 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 SellRegularColumbian(Alternative 1) ProcessFurther intoDecafColumbian(Alternative…
Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 4,300 pounds. The standard quantity of materials required in the process is 4, 300 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $8,972 per batch. The additional processing also causes a 5% loss of product due to evaporation. Question Content Area a. Prepare a differential analysis dated October 6 on whether to Sell Regular Columbian (Alternative 1) or Process Further into Decaf Columbian (Alternative 2). For those boxes in which you b. 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 two decimal places. 0 Differential Analysis Sell…
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Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 6,500 pounds. The standard quantity of materials required in the process is 6,500 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $13,068 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 SellRegularColumbian(Alternative 1) ProcessFurther…
Sell or Process Further Rise N' Shine Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $5.50 per pound. Columbian coffee can be sold without further processing for $9.22 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.88 per pound. The processing into Decaf Columbian requires additional processing costs of $10,230 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 SellRegularColumbian(Alternative 1)…
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