Burton is a prospector in the Texas Panhandle. He has also been running a side business for the past couple of years.

At the end of the recent season,John Burton evaluated his financial results:

1.	Should John Burton drop rattles from his product offerings? Support your answer with computations.
2.	An old miner has offered to buy every rattle"as is" for $0.34 per rattle (note: "as is" refers to the situation where John only removes the rattle from the snake and no processing costs are incurred). Assume that John expects to process the same number of snakes each season. Should he sell rattles to the miner? Support your answer with computations.

Homework: Chapter 16 Homework Question 17, E16-30 (si... Part 1 of 4 HW Score: 45%, 9 of 20 points O Points: 0 of 1 Save John Burton is a prospector in the Texas Panhandle. He has also been running a side business for the past couple of years. (Click the icon to view the side business information.) At the end of the recent season, John Burton evaluated his financial results: (Click the icon to view the financial results.) (Click the icon to view additional cost information.) Read the requirements ..... Requirement 1. Should John Burton drop rattles from his product offerings? Support your answer with computations. Begin by calculating the incremental profit from selling rattles. (If a box is not used in the table leave the box empty; do not select a label or enter a zero.) Costs: OX Data table Requirements Meats Skins Rattles Total 1. Incremental profit from selling rattles Sales revenues $ 31,500 $ 8,400 $ 2,100 $ 42,000 2. Share of snake cost 16,800 4,480 1,120 22,400 Should John Burton drop rattles from his product offerings? Support your answer with computations. An old miner has offered to buy every rattle "as is" for $0.34 per rattle (note: "as is" refers to the situation where John only removes the rattle from the snake and no processing costs are incurred). Assume that John expects to process the same number of snakes each season. Should he sell rattles to the miner? Support your answer with computations. Processing expenses 4,410 630 600 1,260 1,200 6,300 6,000 Allocated overhead 4,200 $ 6,090 $ 2,690 $ 7,300 Income (loss) (1,480) $ Print Done Print Done Help me solve this Etext pages Get more help Clear all Check