(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 ($7.95 per pound) Less joint costs incurred up to the split-off point 7.95 where T-bone steak can be identified as a separate product 3.80 Profit per pound $4.15 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 and New York cuts. The filet mignon can be sold for $12.00 per pound, and the New York cut can be sold for $8.80 per pound k cut, the remaining ounces are waste. It costs $o.55 to further process one T-bone steak into the filet mignon Required 2 Woaud wou reconmend ahtge disaoenslel k ew Yor ut steka? 2. Would you recommend that the T-bone steaks be sold as initially cut or processed further