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 in cut or to process them further intolet mignon and the New York out If the Ibone steaks are sold as initially cut the company figures that a 1-pound T-bone steak would yield the following profit Selling price (52.20 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 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 out One 16 ounce T-bone steak out in the way will yield ohe bouncefilet mignon and One Bounce New York Cumhe remaining ounces are waste. It costs $0.19 to further process one T-bone steak into the filet mignon and New York outs. The Wetgnon can be sold for $3.60 per pound, and the New York out can be sold for $3140 per pound Required What is the financial advantage disadvantage of further processing one t.bone stak l e 2 Would you recommend that the t.bone be sold as initially cut or grocessed further n on and New York out steaks Complete thesion by o w n the tabs below W E R T Y U T o P : '. ' s D F G H J K L : : x C v BNM. . ; * 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 in cut or to process them further intolet mignon and the New York out If the Ibone steaks are sold as initially cut the company figures that a 1-pound T-bone steak would yield the following profit Selling price (52.20 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 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 out One 16 ounce T-bone steak out in the way will yield ohe bouncefilet mignon and One Bounce New York Cumhe remaining ounces are waste. It costs $0.19 to further process one T-bone steak into the filet mignon and New York outs. The Wetgnon can be sold for $3.60 per pound, and the New York out can be sold for $3140 per pound Required What is the financial advantage disadvantage of further processing one t.bone stak l e 2 Would you recommend that the t.bone be sold as initially cut or grocessed further n on and New York out steaks Complete thesion by o w n the tabs below W E R T Y U T o P : '. ' s D F G H J K L : : x C v BNM. . ; *
