Much Meat Processing Corporation is a major processor of pork, and must determine whether to sell pork chops with the bone in or to process them further into pork tenderloin and porkloin. Management believes that a kilogram (kg) of the bone in pork chop would yield the following profit Selling price (per kg) Less joint costs incurred up to split off point when the pork chop is identified as a separate product (per kg) Profit (per kg) $8 553 $3 The bone in pork chops can be sold as is or processed further into pork tenderloin and porkloin. One kg of pork chop will yield a 35 kg pork tenderloin and a 65 kg porkloin. The cost of processing the pork chops into these cuts is $1.50/kg. The pork tenderloin can be sold for $13/kg and the porkloin can be sold for $11/kg Required: 1. Calculate the incremental profit for each kg of pork chop processed further into pork tenderloin and porkloin. (4 marks) 2 Would you recommend that the pork chops be sold as is or processed further? Why? (2 marks)