Stiller Co. is a major processor of beef and other meat products. The company has a large amount 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 pound of T-bone steak would yield the following profit: Wholesale selling price ($16.00 per pound).. Joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product... Profit per pound $16.00 14.00 $2.00 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 28 ounce T-bone steak cut in this way will yield one 4 ounce filet mignon and one 21 ounce New York-cut; the remaining ounces

are waste. The cost of processing the T-bone steaks into these cuts is $4.00 per pound. The filet mignon can be sold retail for $44 per pound, and the New York-cut can be sold wholesale for $28 per pound.

a) Determine the profit per 28 ounce steak from processing the T-bone steaks further into filet mignon and New York-cut steaks. Please make sure your final answer(s) are accurate to 2 decimal places. Profit (loss) per 28 ounce steak from further processing T-bone steaks = $ b) Would you recommend that the T-bone steaks be sold as is or processed further? The T-bone steaks should be (Select one)

Stiller Co. is a major processor of beef and other meat products. The company has a large amount 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 pound of T-bone steak would yield the following profit: As menuoned 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 28 ounce T-bone steak cut in this way will yield one 4 ounce filet mignon and one 21 ounce New York-cut; the remaining ounces are waste. The cost of processing the Tbone steaks into these cuts is $4.00 per pound. The filet mignon can be sold retail for $44 per pound, and the New York-cut can be sold wholesale for $28 per pound. a) Determine the profit per 28 ounce steak from processing the T-bone steaks further into filet mignon and New York-cut steaks. Please make sure your final answer(s) are accurate to 2 decimal places