Question
Required information Skip to question [The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process.
Required information Skip to question [The following information applies to the questions displayed below.] Breakfasttime Cereal Company manufactures two breakfast cereals in a joint process. Cost and quantity information is as follows: Quantity at Sales Price Joint Cost Cereal Split-Off Point per Kilogram $ 97,000 Yummies 12,700 kilograms $ 6.70 Crummies 8,700 kilograms 8.20 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $2.20 per kilogram, and the mulch will sell for $14.00 per kilogram. Required: 1-a. Compute the net incremental revenue per kilogram if management decide to process Crummies into the mulch
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