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a.
Columbian Into Decaf on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues
Costs
Income (loss)
b.
The differential revenue from processing further to Decaf Columbian is
the differential cost of processing further. Thus, Rise N’ Shine Coffee
process further into Decaf Columbian.
The decrease in selling price of Decaf Columbian that would cause neither an advantage or
disadvantge for processing further:
The current selling price less the decrease would be:
Verify by completing the following differential analysis based on the new selling price:
Columbian Into Decaf on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues
Costs
Income (loss)
Net Advantage of Further Processing
Volume of Decaf Columbian
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Sell Regular Columbian or Process Further into Decaf Columbian
An asterisk (*) will appear to the right of an incorrect entry, or above and below in formulas.
Enter a zero in cells you would otherwise leave blank.
a.
Columbian Into Decaf on Income
(Alternative 1) (Alternative 2) (Alternative 2)
Revenues 55,320$ 67,716$ 12,396$
Increase in selling price of Decaf Columbian that would cause neither an advantage or
disadvantge for processing further:
Sell Regular Columbian or Process Further into Decaf Columbian
Cells with non-gray backgrounds are protected and cannot be edited.
Answers are entered in the cells with gray backgrounds.