Problem 13-20 (Algo) Sell or Process Further Decision (LO13-7) (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 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 ($2.20 per pound) $ 2.20 Less joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product 1.25 Profit per pound $ 0.95 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 out the remaining ounces are waste, It costs $0.18 to further process one T-bone steak into the filet mignon and New York cuts. The filet mignon can be sold for $3.60 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 steoks be sold as initially cut or processed further? Complete this question by entering your answers in the tabs below. Requred Required 2 What is the financial advantage (disadvantage) of further processing one T-bone steak into flet mignon and New York cut steaks? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Show lessA per unit No Required 2 >