Zing coffee company produces colombian coffee in batches of 6,300 pounds. the standard quantity of...
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Zing coffee company produces colombian coffee in batches of 6,300 pounds. the standard quantity of materials required in the process is 6,300 pounds, which cost $6 per pound. colombian coffee can be sold without further processing for $9 per pound. columbian coffee can also be processed further to yield decaf Colombian, which can be sold for $12 per pound. The processing into decaf Colombian requires additional processing costs of $12,666 per batch. The additional processing also causes a 5% loss of product due to evaporation.
Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf b. Should Zing sell Columbian coffee or process further and sell Decaf Columbian? Process into Decaf Columbian c. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf columbian. 3 per pound
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