Jackson Flocks Inc. processes Turkeys into four products for sale on the wholesale market:

Breasts
Smoked legs and thighs
Whole Turkeys
Necks and wings for soup

The costs to get the products to the point where they can be separately identified total $10,000,000. Additional Information follows:

Product	Lbs. Produced	Cost after split-off	Selling price per pound
Breasts	1,000,000	$200,000	$2
Smoked legs and thighs	2,500,000	500,000	4
Whole Turkeys	2,000,000	425,000	3
Necks and wings	500,000	350,000	5

Feathers are sold at the split-off point as a by-product for $1,000,000 which lower the joint costs allocated.

Based on the information given for Jackson Flocks:

1. Prepare an analysis for Jackson Flocks that compares processing the smoked legs and thighs further, as it currently does, with selling them as a product immediately at split-off.

2. #2
   	Units	Dollars
   Monthly unit output	2,500,000.00	$               4,500,000.00
   Sales Price		$             10,000,000.00
   Less: NRV Sales value at splitoff		$              (9,500,000.00)
   Incremental revenue		$                  500,000.00
   Less: Further processing costs		$                 (500,000.00)
   Additional contribution from further processing