$4$

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 profit 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 allocatior

b$-2.$ Calculate the gross profit for each product.

$20$

$c-1.$ Should Gibson 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$-?$

$01$:$24$:$21$

Complete this question by entering your answers in the tabs below.

Req $A1$

Req $A2$

Req A$3$

Req B$1$

Req B$2$

Req C$1$

Req C$2$

Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base.

Note: Round "Allocation rate" to $2$ decimal places.

$\backslash$table$[[$Product$,$Allocation Rate,$x,$Weight of Base,$=,$Allocated Cost$],[$Drumsticks$,,x,,=,$$

$4$

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 profit 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.

$20$

b$-2.$ Calculate the gross profit for each product.

points

c$-1.$ Should Gibson 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 $c-1?$

$01$:$24$:$14$

Complete this question by entering your answers in the tabs below.

Req A$1$

Req A$2$

Req A$3$

Req B$1$

Req B$2$

Req C$1$

Req C$2$

Calculate the gross profit for each product.

$\backslash$table$[[,\backslash$table$[[$Chicken$],[$Drumsticks$]],\backslash$table$[[$Chicken$],[$Breast$]],],[$Revenue$,,,],[$Cost of goods sold,,,$],[$Gross margin,$$,0,$$