Calculate the Farm-to-Retail Price Spread for pork given the following information.

a. How does pork at the retail level compare to live hogs at the farm level? Calculate the farm-to-retail price spread.

Live hogs Pork cuts

$0.84/lb. $3.78/lb. (average)

Conversion Factor: 2.4 lbs. of live hogs will yield 1 lb. of pork cuts

b. How would this price spread change if you produced organic pork that cost $1.75/lb. and that could be sold for $5.50/lb. with the same conversion factor of 2.4?