. Process or Sell Decision. The Smokey Meat Company produces a meat product which can be sold after the slaughtering process, or it can be smoked and then

sold. For next month the company has scheduled production of 30,000 pounds which, if sold unsmoked, would bring a selling price of \(\$ 2.30\) per pound. Costs associated with producing the unsmoked product are \(\$ 1.20\) per pound plus fixed facilities costs of \(\$ 30,000\) for the month. If 30,000 pounds are produced, the entire slaughtering capacity will be used.
If the 30,000 pounds are smoked, smoking capacity, which would otherwise be idle, will be used entirely also. The additional variable costs, mainly for heat and smoking ingredients, are estimated to be \(\$ 0.40\) per pound; and the selling price of the smoked product is \(\$ 3.30\) per pound. The monthly committed fixed costs on the portion of the facility used for smoking the meat amount to \(\$ 8,000\), and avoidable fixed costs are \(\$ 5,000\).
Required:
Prepare an analysis to help the manager decide whether the 30,000 pounds should be smoked or not be smoked.