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[The following information applies to the questions displayed below] Breakfast time Cereal Company manufactures two breakfast cereals In a joint process. Cost and quantity Information
[The following information applies to the questions displayed below] Breakfast time Cereal Company manufactures two breakfast cereals In a joint process. Cost and quantity Information is as follows: Joint Cost Cereal Quantity at Split-Off Point Sales Price per Kilogram $93,000 Yummies 12,300 kilograms $6.30 Crummies 8,300 kilograms 7,80 Breakfasttime Cereal Company has an opportunity to process its Crummies further into a mulch for ornamental shrubs. The additional processing operation costs $1.80 per kilogram, and the mulch will sell for $12.00 per kilogram. Required: 1-a. Compute the net incremental revenue per kilogram if management decide to process Crummies into the mulch. (Round your answer to 2 decimal places.) 1-b. Should Breakfast time?s management decide to process Crummies into the mulch? Yes No
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