**Benson Chicken Corporation Case Study**Benson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 14,000 pounds of raw chicken that costs $7,450, the company produces two parts: 2,500 pounds of drumsticks and 4,500 pounds of breast for a processing cost of $2,466. The chicken breast is further processed into 3,700 pounds of steak for a processing cost of $1,700. The market price of drumsticks per pound is $1.40 and the market price per pound of chicken steak is $3.70. If Benson decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20.**Required Tasks:****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.**b-2.** Calculate the gross profit for each product.**c-1.** Should Martin 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?**Interactive Section (Tabs):**Complete these questions by entering your answers in the tabs below.Tabs include:- Req A1: Allocation of joint costs using weight.- Req A2: Gross profit calculation for each product.- Req A3: Evaluation of drumstick product line.- Req B1: Reallocation of joint costs by market value.- Req B2: Gross profit calculation for each product after reallocation.- Req C1: Decision on further processing chicken breasts.- Req C2: Impact on profit analysis.**Table for Calculation (Req B2):**- **Columns:** - Chicken Drumsticks - Chicken Breast- **Rows:** - Revenue - Cost of goods sold - Gross profitNote: Round intermediate calculations and final answers to 2 decimal places. **Benson Chicken Corporation Case Study**Benson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 14,000 pounds of raw chicken that costs $7,450, the company produces two parts: 2,500 pounds of drumsticks and 4,500 pounds of breast for a processing cost of $2,466. The chicken breast is further processed into 3,700 pounds of steak for a processing cost of $1,700. The market price of drumsticks per pound is $1.40, and the market price per pound of chicken steak is $3.70. If Benson decided to sell chicken breast instead of chicken steak, the price per pound would be $2.20.**Required Tasks**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.b-2. Calculate the gross profit for each product.c-1. Should Martin 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?**Interactive Tab Instructions**- Enter your answers in the tabs provided: - Req A1 - Req A2 - Req A3 - Req B1 - Req B2 - Req C1 - Req C2**Cost Allocation Template**- Reallocate the joint cost to joint products, drumsticks and breasts, using relative market values as the allocation base (round intermediate calculations and final answers to 2 decimal places): - Total cost of drumsticks: [Input box] - Total cost of chicken breasts: [Input box]Use the navigation buttons to proceed through the requirements:- [Req A3] [Req B2]

Name: **Benson Chicken Corporation Case Study**Benson Chicken Corporation p
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: **Benson Chicken Corporation Case Study**Benson Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a st