Harper 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 12,000 pounds of raw chicken that costs $7,000, the company produces two parts: 2,800 pounds of drumsticks and 4,200 pounds of breast for a processing cost of $2,450. The chicken breast is further processed into 3,200 pounds of steak for a processing cost of $2,000. The market price of drumsticks per pound is $1.25 and the market price per pound of chicken steak is $4.20. If Harper decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20.

1. b-1.Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.
2. b-2.Calculate the gross profit for each product.
3. c-1.Should Harper further process chicken breasts into chicken steak?(Use the assumption made in requirementb-1).
4. c-2.How would the profit be affected by your answer inc-1?