Question
5 [The following Information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity
5 [The following Information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity Information is as follows: of 2 Joint Cost $94,000 Cereal Yummies Crummies Quantity at Split-Off Point Sales Price per Kilogram 12,400 kilograms $6.40 8,400 kilograms 7.90 Look Fint Breakfasttime Cereal Company has an opportunity to process Its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $1.90 per kilogram, and the mulch will sell for $12.50 per kilogram. Required: 1-a. Compute the net Incremental revenue per kilogram If management decide to process Crummies Into the mulch. 1-b. Should Breakfasttime's management decide to process Crummies into the mulch? ences Complete this question by entering your answers in the tabs below. Req 1A Req 18 Compute the net incremental revenue per kilogram if management decide to process Crummies into the mulch. (Round your answer to 2 decimal places.) Net incremental revenue per kilogram Req 1B >
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