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eBook Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of...

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Accounting

eBook
Sell or Process Further
Abica Coffee Company produces Columbian coffee in batches of 6,100 pounds. The standard quantity of materials required in the process is 6,100 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 $12,554 per batch. The additional processing also causes a 5% loss of product due to evaporation.
a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis
Sell Regular Columbian (Alt.1) or Process Further into Decaf
Columbian (Alt.2)
October 6
\table[[:.,\table[[Sell],[Regular],[Columbian],[(Alternative 1)]],\table[[Process],[Further into],[Decaf],[Columbian],[(Alternative 2)]],\table[[Differential],[Effect],[on Income],[(Alternative 2)]]],[Revenues,$,$,$
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