Problem 12-22 Sell or Process Further [LO2] Valley Meat Processing Corporation is a major processor of beef and other meat products. The company has a large number of T-bone steaks on hand, and it is trying to decide whether to sell the T-bone steaks as is or to process them further into filet mignon and New York-cut steaks. Management believes that a kilogram of T-bone steak would yield the following profit: Wholesale selling price ($16.00 per kilogram) $16.00 Less joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product Profit per kilogram 12.00 $ 4.00 As mentioned above, instead of being sold as is, the T-bone steaks could be further processed into filet mignon and New York-cut steaks. Cutting one side of a T-bone steak provides the filet mignon, and cutting the other side provides the New York cut. One 480- gram T-bone steak cut in this way will yield one 181-gram filet mignon and one 241-gram New York cut; the remaining grams are waste. The cost of processing the T-bone steaks into these cuts is $1.40 per kilogram. The filet mignon can be sold retail for $26 per kilogram, and the New York cut can be sold wholesale for $22 per kilogram. Required. 1. Determine the profit for each 480-gram T-bone steak processed further into filet mignon and New York-cut steaks. (Round your answers to 2 decimal places.) Revenue from further processing: Selling price of one filet mignon Selling price of one New York cut Total revenue from further processing Less revenue from one T-bone steak Incremental revenue from further processing Less cost of further processing Profit from further processing Per 480 gram T- Bone