Problem 11-20 (Algo) Sell or Process Further Decision (LO11-7) $ 2.10 (Prepared from a situation suggested by Professor John W. Hardly.) 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 (52.18 per pound) Less joint costs incurred up to the split-off point where t bone steak can be identified as a separate product 1.30 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 cut. One 16 ounce T-bone steak cut in this way will yield one 6 ounce filet mignon and one 8 ounce New York cut the remaining ounces are waste. It costs $0.16 to further process one T-bone steak into the filet mignon and New York cuts. The filet mignon can be sold for $4.40 per pound, and the New York cut can be sold for $3.50 per pound. Required: 1. What is the financial 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 initially cut or processed further? $ 0.50 Complete this question by entering your answers in the tabs below. Required: Required What is the financial advantage (disadvantage) of further processing one T-bone steak into filet mignon and New York cut steaks? (Do not found intermediate calculations. Round your answer to 2 decimal place)