Abica Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 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 $11,580 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)
Abica Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 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 $11,580 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)
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
Abica Coffee Company produces Columbian coffee in batches of 5,500 pounds. The standard quantity of materials required in the process is 5,500 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
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.
| Sell Regular Columbian (Alternative 1) |
Process Further into Decaf Columbian (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
| Revenues | $fill in the blank 5046d9fabfcb073_1 | $fill in the blank 5046d9fabfcb073_2 | $fill in the blank 5046d9fabfcb073_3 |
| Costs | fill in the blank 5046d9fabfcb073_4 | fill in the blank 5046d9fabfcb073_5 | fill in the blank 5046d9fabfcb073_6 |
| Income (Loss) | $fill in the blank 5046d9fabfcb073_7 | $fill in the blank 5046d9fabfcb073_8 | $fill in the blank 5046d9fabfcb073_9 |
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