please explain how you get the answers. C screngagendw com/ilm/takeAssignment ta

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please explain how you get the answers.

C screngagendw com/ilm/takeAssignment takeAssignmentMando?taleAssignmer Sessionlocaen assgnment take Sell or Process Further Abica Roast Coffee Company produces Columbian coffee in batches of 5,900 pounds. The standard quantity of materials required in the process is 5,900 pounds, which cost $4.00 per pound. Columbian coffee can be sold without further processing for $9.40 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.00 per pound. The processing into Decaf Columbian requires additional processing costs of $10,450 per batch. The additional processing will also cause a 5% loss of product due to evaporation. ride a. Prepare a differential analysis dated August 28, 2014, on whether to sell regular Columbian (Alternative 1) or process further into Decaf Colum (Alternative 2). Differential Analysis Sell Regular Columbian lAlt. 1) or Process Further into Decaf Columbian t.2) August 28, 2014 Sell Regular Columbian (Alternative 1) Pracess Further into Decaf Columbian (Alternative 2) Differential Effect on Income (Alternat Revenues Costs Income (Lossl

Explanation / Answer

Alternative 1 Alternative 2 Differencial effect Revenue 55460 64900 9440 Cost 23600 34050 -10450 Income / loss 31860 30850 -1010

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