Pricing and sales analysis The management of the Southern Cottonseed Com- pany has engaged you to help develop the information to be used for managerial decisions. The company has the capacity to process 20,000 tons of cottonseed per year. The yield of a ton of cottonseed is as follows:

A special marketing study revealed that the company can expect to sell its entire output for the coming year at the listed average selling prices.

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Product Average Yield per Ton of Cottonseed Average Selling Price per Trade Unit Oil 300 lbs. $ .15 per lb. Meal 600 lbs. 50.00 per ton Hulls 800 lbs. 20.00 per ton Lint 100 lbs. 3.00 per cwt Waste 200 lbs.