Jeff

Bennett

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

please answer ALL parts

The cost of snakes is assigned to each product line using the relative sales value of meat, skins, and rattles (i.e., the percentage of total sales generated by each product). Processing expenses are directly traced to each product line. Overhead costs represent Jeff's basic living expenses. These are allocated to each product line on the basis of processing expenses. Jeff has a philosophy of every product line paying for itself and is determined to cut his losses on rattles. Requirement 1. Should Jeff Bennett 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.) Jeff Bennett 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, Jeff Bennett evaluated his financial results: (Click the icon to view the financial results.) (Click the icon to view additional cost information.) Read the requirements. 1. Should Jeff Bennett drop rattles from his product offerings? Support your answer with computations. 2. An old miner has offered to buy every rattle "as is" for $1.35 per rattle (note: "as is" refers to the situation where Jeff only removes the rattle from the snake and no processing costs are incurred). Assume that Jeff expects to process the same number of snakes each season. Should he sell rattles to the miner? Support your answer with computations. Based on the popularity of shows such as "Rattlesnake Nation," there has been a surge of interest from professionals and amateurs to visit the northern counties of Texas to capture snakes in the wild. Jeff has set himself up as a purchaser of these captured snakes. Jeff purchases rattlesnakes in good condition from "snake hunters" for an average of $12 per snake. Jeff produces canned snake meat, cured skins, and souvenir rattles, although he views snake meat as his primary product. \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & Meats & & Skins & Rattles & Total \\ \hline Sales revenues & $ & 26,600 & $ & 7,600$ & 3,800$ & 38,000 \\ \hline Share of snake cost & & 16,800 & & 4,800 & 2,400 & 24,000 \\ \hline Processing expenses & & 5,320 & & 1,140 & 1,140 & 7,600 \\ \hline Allocated overhead & & 4,200 & & 900 & 900 & 6,000 \\ \hline Income (loss) & $ & 280 & $ & 760$ & (640)$ & 400 \\ \hline \end{tabular} The cost of snakes is assigned to each product line using the relative sales value of meat, skins, and rattles (i.e., the percentage of total sales generated by each product). Processing expenses are directly traced to each product line. Overhead costs represent Jeff's basic living expenses. These are allocated to each product line on the basis of processing expenses. Jeff has a philosophy of every product line paying for itself and is determined to cut his losses on rattles. Requirement 1. Should Jeff Bennett 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.) Jeff Bennett 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, Jeff Bennett evaluated his financial results: (Click the icon to view the financial results.) (Click the icon to view additional cost information.) Read the requirements. 1. Should Jeff Bennett drop rattles from his product offerings? Support your answer with computations. 2. An old miner has offered to buy every rattle "as is" for $1.35 per rattle (note: "as is" refers to the situation where Jeff only removes the rattle from the snake and no processing costs are incurred). Assume that Jeff expects to process the same number of snakes each season. Should he sell rattles to the miner? Support your answer with computations. Based on the popularity of shows such as "Rattlesnake Nation," there has been a surge of interest from professionals and amateurs to visit the northern counties of Texas to capture snakes in the wild. Jeff has set himself up as a purchaser of these captured snakes. Jeff purchases rattlesnakes in good condition from "snake hunters" for an average of $12 per snake. Jeff produces canned snake meat, cured skins, and souvenir rattles, although he views snake meat as his primary product. \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & Meats & & Skins & Rattles & Total \\ \hline Sales revenues & $ & 26,600 & $ & 7,600$ & 3,800$ & 38,000 \\ \hline Share of snake cost & & 16,800 & & 4,800 & 2,400 & 24,000 \\ \hline Processing expenses & & 5,320 & & 1,140 & 1,140 & 7,600 \\ \hline Allocated overhead & & 4,200 & & 900 & 900 & 6,000 \\ \hline Income (loss) & $ & 280 & $ & 760$ & (640)$ & 400 \\ \hline \end{tabular}