Zing 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 $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 $13,377 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 must enter subtracted or negative numbers use a minus sign. Differential AnalysisSell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2)October 6 Sell Regular Columbian (Alternative 1) Process Further into Decaf Columbian (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $fill in the blank c2aeaefe403a049_1 $fill in the blank c2aeaefe403a049_2 $fill in the blank c2aeaefe403a049_3 Costs fill in the blank c2aeaefe403a049_4 fill in the blank c2aeaefe403a049_5 fill in the blank c2aeaefe403a049_6 Income (Loss) $fill in the blank c2aeaefe403a049_7 $fill in the blank c2aeaefe403a049_8 $fill in the blank c2aeaefe403a049_9

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 25P: Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio...

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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 must enter subtracted or negative numbers use a minus sign.

Differential AnalysisSell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2)October 6

	Sell Regular Columbian (Alternative 1)	Process Further into Decaf Columbian (Alternative 2)	Differential Effect on Income (Alternative 2)
Revenues	$fill in the blank c2aeaefe403a049_1	$fill in the blank c2aeaefe403a049_2	$fill in the blank c2aeaefe403a049_3
Costs	fill in the blank c2aeaefe403a049_4	fill in the blank c2aeaefe403a049_5	fill in the blank c2aeaefe403a049_6
Income (Loss)	$fill in the blank c2aeaefe403a049_7	$fill in the blank c2aeaefe403a049_8	$fill in the blank c2aeaefe403a049_9

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