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Q3. Sale Chicken 1 Kg Cost of chicken Process cost Profit Rs.250 Rs.160 Rs.7 Rs.83 Firm decides to sell chicken in parts like wing,

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Q3. Sale Chicken 1 Kg Cost of chicken Process cost Profit Rs.250 Rs.160 Rs.7 Rs.83 Firm decides to sell chicken in parts like wing, chest piece and drum stick. The estimated prices of above products are Wings Rs. 180 Kg, Chest piece Rs.320 kg and Drum stick Rs.300 Kg. if we split 1 kg chicken in these products. Firm estimated that following yield can be obtained from 1 Kg chicken. 100 grams wing, 280 grams drum sticks and 500 gram chest piece. The process cost of splitting chicken is Rs.18. Required: Should it be sell or process further?

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