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Hearty Dairy is trying to decide whether it should sell the milk that it processes as is or further process it into butter. Management has

Hearty Dairy is trying to decide whether it should sell the milk that it processes as is or further process it into butter. Management has collected the following data pertaining to milk: Wholesale selling price ($4.70 per 4 litres) $ 4.70 Less: Joint costs incurred up to the split-off point where milk can be identified as a separate product 3.60 Profit per 4 litres $ 1.10 A 4-litre container of milk, when further processed, can yield 0.5 kilogram of butter. The cost of further processing is $3.40 per kilogram of butter. One kilogram of butter can be sold at a price of $15.70. Determine the profit per 1/2 kilogram from processing the milk further into butter. A. $3.15. B. $7.60. C. $1.45. D. $2.90. E. $4.65.

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