(Prepared from a suation 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 is trying to decide whether to sell the t.bone steaks as they are initially out or to process them further into flet mignon and the New York cut if the T-bone steaks are sold as initially cut, the comparwy figures that a 1 pound t.bone steak would yield the following profit Selling price ($2.40 per pound) Lesson costs incurred up to the spik-off point where Tubone steak can be identified as a separate product Profit per pound $ 0.75 As mentioned above, instead of being sold as inicially cut, the T-bone steaks could be further processed into flet mignon and New York out steaks, Cutting one side of a T-bonetak provides the emigron, and cutting the other side provides the New York cut. One 16-ounce T-bone weak cut in this way will yield one 6-ounce filet mignon and one Bounce New York cut the remaining ounces are was. The cost of processing the T-bone steaks into these cuts is $0.16 per pound. The filet mignon can be sold for $3.00 per pound, and the New York out can be sold for $3.30 per pound. Required: 1. Determine the profit per pound from processing the t.bone steaks into flet mignon and New York out steaks (Do not found intermediate calculations. Round your answers to 2 decimal places.) Per 16-Ounce Sales from further processing Sales price of one flet mignon Sales price of one New York out Total revenue from further processing Less sales revenue from one T-bone Steak incremental revenue from the processing Less cost of further processing Pros ) per pound from further processing 2. Would you recommend that the t.bone steaks be sold as initially out or processed further? T-bone steaks should be processed further T-bone steaks should be sold as it out