How Harper Chicken Corporation Processes and Packages Chicken
Harper Chicken Corporation's Processing and Packaging
Harper Chicken Corporation purchases 12,000 pounds of raw chicken for $7,000 and processes them into 2,800 pounds of drumsticks and 4,200 pounds of chicken breast. The processing cost for both parts is $2,450.
The chicken breast is further processed into 3,200 pounds of steak for an additional 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.