Answered step by step
Verified Expert Solution
Question
1 Approved Answer
the chicken company is a major processor of chicken meat products. the company has a large amount of medium sized double chicken breasts on hand
the chicken company is a major processor of chicken meat products. the company has a large amount of medium sized double chicken breasts on hand and it is considered whether to sell the double breasts as initially cut or to process them further into single chicken breasts and chicken tenderloins. if the double chicken breasts are sold as initially cut, the company figures that one kilogram of double chicken breast would yield the following profits. selling price ($9 per kilogram). $ 9.00 less joint costs incurred up to the split off point where double chicken breast can be identified as a separate product 3. 25 profit per kilogram $ 5.75 if company were to further process the double chicken breasts , then cutting the double chicken breast provides single chicken breasts and chicken tenderloins. one medium double chicken breast, which generally weighs 600grams cut in this way will yield two single breast weighing 225 grams each and two chicken tenderloins weighing 50 grams each ; the remaining grams are waste. it costs $0.50 to further process one double chicken breast into two single chicken breast and two chicken tenderloins. the single chicken breast can be sold for $11 per kilogram and the chicken tenderloins cut can be sold for $ 15 per kilogram. REQUIRED A) what is the financial advantages (disadvantages) of further processing one medium sized double chicken breast into two single chicken breast s and two chicken tenderloins? B) would you recommend that the double chicken breast be sold as initially cut or processed further? explain why?and the chicken tenderloins cut
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started