1.10 (Prepared from a situation suggested by Professor John W. Hardy) Lone Star Meat Packers is a major processor of beef and other meat products. The company has a large amount of T-bone steak on hand, and it is trying to decide whether to sell the T-bone steaks as they are initially cut or to process them further into filet mignon and the New York cut If the T-bone steaks are sold as initially cut the company figures that a 1-pound T-bone steak would yield the following profit: Selling price ($2.40 per pound) $ 2.40 Joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product Protit pet pound 01.00 If the company were to further process the T bone steaks, then cutting one side of a T-bone steak provides the filet mignon and cutting the other side provides the New York cut One 16 ounce T-bone steak cut in this way will yield one 6 ounce filet mignon and one 8 ounce New York cut the remaining ounces are waste. It costs $0.14 to further process one T-bone steak into the filet mignon and New York cuts. The filet mignon can be sold for $4.00 per pound, and the New York cut can be sold for $3.30 per pound. Required: 1. What is the financial advantage (disadvantage) of further processing one T-bone steak into filet mignon and New York cut steaks? 2. Would you recommend that the T-bone steaks be sold as initially cut or processed further? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage of further processing one T-bone steak into filet mignon and New York cut steaks? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) per unit Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Would you recommend that the T-bone steaks be sold as initially cut or processed further? OT-bone steaks should be processed further. T-bone steaks should be sold as initially cut.