[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 ofT-loohe steak on hand, and it is trying to decide whether to sell the Home steaks as they are initially cut or to process them further into let mignon and the New York cut. If the T-loone steaks are sold as initially cut,the company figures that a 1-pound T-hone steak would yield the followmg profit: Selling price ($2.93 per pound) $ 2.68 Less joint costs incurred up to the splitoF-F point where Tbone steak can be identified as a separate product 1.25 Profit per pound 3': 3-?5 If the company were to further process the T-hone steaks. then cutting one side of a T-loone steak proVIdes the filet mignon and cutting the other side provides the New York cut. One \"IE-ounce T-oone steak cut In this way will yield one 6-ounce filet mlgnon and one 8-ounce New York cut; the remaining ounces are waste. It costs $0.14 to further process one T-hone steak into the filet mlgnon and New York cuts. The fi let mig hon can be sold for $4.40 per pound, and the New York cut can be sold for $3.60 per pound. Required: 1. What is the financial advantage {disadvantage} offurther processing one Tbone steak Into filet mlgnon and New York cut steaks? 2. Would you recommend thatthe T-oone steaks be sold as initially cut or processed further? Complete this question by entering your answers in the tabs below. I Requiredl I Requiredz What is the financial advantage {disadvantage} of further processing one Tbone steak into filet mignon and New York cut steaks? {Do not round intermediate calculations. Round your answers to 2 decimal places.)