Harper Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes t
hem into two different products: chicken drumsticks and chicken steak. From a standard batch of 12,000 pounds of raw chicken that costs $7,000, the company produces two parts: 2,800 pounds of drumsticks and 4,200 pounds of breast for a processing cost of $2,450. The chicken breast is further processed into 3,200 pounds of steak for a processing cost of $2,000. The market price of drumsticks per pound is $1.25 and the market price per pound of chicken steak is $4.20. If Harper decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20.
Required
a-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base.
a-2. Calculate the gross margin for each product.
a-3. If the drumsticks are producing a loss, should that product line be eliminated?
b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.
b-2. Calculate the gross profit for each product.
c-1. Should Harper further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1).
c-2. How would the profit be affected by your answer in c-1?
Required
a-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base.
a-2. Calculate the gross margin for each product.
a-3. If the drumsticks are producing a loss, should that product line be eliminated?
b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.
b-2. Calculate the gross profit for each product.
c-1. Should Harper further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1).
c-2. How would the profit be affected by your answer in c-1?
1 answer:
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Answer:
Speed = 1050 meters per seconds
Distance =10500 meters
Step-by-step explanation:
Car traveling at a speed of 63 kilometers per hour
Let us convert this into meter per second
Speed = kilometers per hour
Speed = --------(A)
1 kilometer = 1000 meters
1 hours = 3600 seconds
Replacing them in (A)
Speed =
Speed = meters per seconds
Speed = meters per seconds
Speed = 1050 meters per seconds
Distance = speed x time
Speed = 1050 mt per sec
time = 10 sec
Distance = 1050 x 10 = 10500 meters