Exercise 12-11

Exercise 12-11 - c. Increase in sel ing price of Decaf...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 12-11 Name: Kristin VanStrate Section: Score: 100% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Process Columbian Coffee Further Differential revenue from further processing per batch: Revenue from sale of Decaf Columbian $95,000 Revenue from sale of Columbian Coffee 86,400 Differential revenue $8,600 Differential cost per batch: Additional cost of producing Decaf Columbian 10,500 Differential loss from further processing: Decaf Columbian per batch $(1,900) b. Should the Company sel Columbian coffee and not process further to Decaf Columbian? Yes Explain (select your answer from the drop-down list):
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: c. Increase in sel ing price of Decaf Columbian that would cause neither an advantage or disadvantge for processing further: Net disadvantage of further processing = $1,900 = $0.25 Volume of Decaf Columbian 7,600 Verify by completing the fol owing: Differential revenue from further processing per batch: Revenue from sale of Decaf Columbian $96,900 Revenue from sale of Columbian Coffee 86,400 Differential revenue $10,500 Differential cost per batch: Additional cost of producing Decaf 10,500 Differential income from further processing: Decaf Columbian per batch $0 Instructions The differential revenue from processing further to Decaf Columbian is less than the differential cost of processing further....
View Full Document

This note was uploaded on 02/23/2012 for the course ACC 101 taught by Professor Jeff during the Spring '12 term at Lansing.

Ask a homework question - tutors are online