$4$

$25$ points

$02$:$44$:$28$

$($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\mathrm{.}20$ per pound$)$

Less joint costs incurred up to the split$-$off point where

T$-$bone steak can be identified as a separate product

Profit per pound

$\backslash$table$[[$$$2\mathrm{.}20$