The Green Packing Company has discovered an increasing demand for frozen boneless chicken breasts. The frozen chicken breasts can be thawed and cooked quickly. This product is becoming very popular with people who do not want to deal with the bones and other parts of the chicken that have less meat. The company recently received an offer to buy frozen boneless chicken breasts for \($1\) per kilogram. The Green Packing Company, however, is not sure that the company should accept the new offer, because the cost of chicken breasts is greater than \($1\) per kilogram as the following indicates:

All of the joint costs of purchasing and butchering the chicken are allocated to the chicken breasts in this analysis because the chicken breasts are specially ordered.
How should the company analyze this special order for chicken breasts?

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Joint costs purchasing and butchering a chicken Cost of a chicken Butchering costs per chicken Cost of de-boning, freezing and packaging breasts per chicken (0.50 kg. per chicken) Cost of chicken breasts per chicken (0.50 kg.) Cost of chicken breasts per kilogram (2 x $0.55) $0.30 0.10 0.15 $0.55 $1.10