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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 Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Further into Sell Decaf Regular Differential Columbian Columbian Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues 38,700 ✔ Costs Profit (loss)

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 Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Further into Sell Decaf Regular Differential Columbian Columbian Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues 38,700 ✔ Costs Profit (loss)

Managerial Accounting
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 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 Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Further into Sell Decaf Regular Differential Columbian Columbian Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues 38,700 ✔ Costs Profit (loss)
Transcribed Image Text: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 Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Process Further into Sell Decaf Regular Differential Columbian Columbian Effects (Alternative 2) (Alternative 1) (Alternative 2) Revenues 38,700 ✔ Costs Profit (loss)
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