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#1 and 2 please Sell or Process Further, Basic Analysis Carleigh, Inc. is a pork processor. Its plants, located in the Midwest, produce several products

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Sell or Process Further, Basic Analysis Carleigh, Inc. is a pork processor. Its plants, located in the Midwest, produce several products from a common procession rots, chops, spareribs, and the residual The roasts, chops, and spareribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover places that are sold to sausage and hot dog processors. The joint couts for a typical weak are as follower Direct materials $84,000 Direct labor 37,400 Overhead 22,000 The revenues from each product are as follows sirloin roasts, $69.000; chops, 567,000, spareribs, $36,000, and residual, $8,400 Carleigh's management has learned that certain organ meats are a prized delicacy in Asia. They are considering separating those from the residual and selling them abroad for $56,200. This would bring the value of the residual down to $3,050. In addition, the organ meats would need to be packaged and then air freighted to Asia Further processing cost per week is estimated to be $27,100 (the cost of renting additional packaging equipment, purchasing materials, and hiring additional direct labor), Transportation cost would be $10,700 per week. Finally, resource spending would need to be expanded for other activities as well purchasing, receiving and internal shipping). The increase in resource spending for these activities is estimated to be $3,300 per week. Required: 1. What is the gross profit earned by the original mix of products for one week? 2. Should the company separate the organ meats for shipment overseas or continue to sell them at split-off? Separate the organ meats for shipment overseas What is the effect of the decision on weekly gross profit? Increase by

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