Fanning Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 15,000 pounds of raw chicken that costs $7.750, the company produces two parts: 2,800 pounds of drumsticks and 5,000 pounds of breast for a processing cost of $4,025. The chicken breast is further processed into 4,200 pounds of steak for a processing cost of $1,900. The market price of drumsticks per pound is $150 and the market price per pound of chicken steak is $3.90. If Fanning decided to sell chicken breast instead of chicken steak, the price per pound would be $2.30. Required a-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base. a-2. Calculate the gross margin for each product a-3. If the drumsticks are producing a loss, should that product line be eliminated? b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base. b-2. Calculate the gross margin for each product c-1. Should Martin further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1. c-2. How would the profit be affected by your answer in c. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required 1 Required 2 Required I Required C2 Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base. (Round "Allocation rate" to 2 decimal places.) Allocation Rate * Weight of Base - Allocated Cost Product Drumsticks Chicken breast Total allocated cost Required A2 > Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required 1 Required B2 Required at Required C2 Calculate the gross margin for each product. Chicken Drumsticks Chicken Breast Revenue Cost of goods sold Gross margin Required A1 Required A2 Required A3 Required 11 Required B2 Required C1 Required C2 If the drumsticks are producing a loss, should that product line be eliminated? The drumstick product line be eliminated ( Required A2 Required B1 > Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1 Required B2 Required C1 Required C2 Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base. (Round intermediate calculations and final answers to 2 decimal places.) Total cost of drumsticks Total cost of chicken breasts ( auired As Required 2 > Complete this question by entering your answers in the tabs below. Required Al Required A2 Required A3 Required B1 Required B2 Required 1 Required C2 Calculate the gross Profit for each product. (Round intermediate calculations and final answers to 2 decimal places.) Chicken Drumsticks Chicken Breast Revenue Cost of goods sold Gross prom S 000S Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required 81 Required B2 Required C1 Required C2 Should Fanning further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1). Fanning can further process chicken breasino chicken sak Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required A3 Required B1Required B2 Required C1 Required C1 Required C2 Required cz How would the profit be affected by your answer in c-1? Effect on profit ( Required C1