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Question 9 The Chicken Company is a major procesorof chicken meat products. The company has a large amount of medium sized double chicken breasts ori hand and it is considering whether to sell the double breasts as initially cut or to process them further into single chicken breasts and chicken tenderloinis. If the double chicken breasts are sold as initially cut, the company figures that one kilogram of double chicken breast would yield the following profit 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 the 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 600 grams, 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 moo two single chicken breasts 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 advantage (disadvantage) of further processing one medium sized double chicken breast into two single chicken breasts and two chicken tenderloins? (4 marks) b. Would you recommend that the double chicken breast be sold as initially cut or processed further? Explain why? (2 marks) For the toolbar, press ALT.F10 (PC) or ALT+FN+F10 (Mac). Arial 14px V EVEALIX BBQ he B I Y S Paragraph E X |auto proctoru.com is sharing your screen Stop sharing Hide O O