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Han Products manufactures 29,000 unlts of part S-6 each year for use on Its production IIne. At this level of actlvity, the cost per unlt

image text in transcribedimage text in transcribedimage text in transcribed Han Products manufactures 29,000 unlts of part S-6 each year for use on Its production IIne. At this level of actlvity, the cost per unlt for part S-6 is: An outside supplier has offered to sell 29,000 unlts of part S-6 each year to Han Products for \\( \\$ 23 \\) per part. If Han Products accepts this offer, the facilitles now being used to manufacture part S-6 could be rented to another company at an annual rental of \\( \\$ 79,000 \\). However, Han Products has determined that two-thirds of the fixed manufacturing overhead belng applied to part S-6 would continue even If part S-6 were purchased from the outside supplier. Required: What is the financlal advantage (disadvantage) of accepting the outside supplier's offer? (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 trylng to decide whether to sell the T-bone steaks as they are InItlally cut or to process them further into filet mignon and the New York cut. If the T-bone steaks are sold as InItlally cut, the company figures that a 1-pound T-bone steak would yleld the following profit: If the company were to further process the T-bone steaks, then cutting one side of a T-bone steak provldes the filet mignon and cutting the other side provides the New York cut. One 16-ounce T-bone steak cut In this way will yleld 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 financlal 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 Inltially cut or processed further? Complete this question by entering your answers in the tabs below. 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.) Would you recommend that the T-bone steaks be sold as initially cut or processed further

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