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Underground Food Store has 6,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.40. The beef could be
Underground Food Store has 6,000 pounds of raw beef nearing its expiration date. Each pound has a cost of $4.40. The beef could be sold "as is" for $3.00 per pound to the dog food processing plant, or roasted and sold in the deli. The cost of roasting the beef will be $2.70 per pound, and each pound could be sold for $6.40. What should be done with the beef, and why? If required, round final answers to two decimal places. The beef should be processed further since the sales price increases by $ 4,200 X per pound and the cost only increases by $ 4,200 X per pound. Feedback Check My Work Compare changes in sales to changes in costs. Which one is more relative to the other? This is the key in making the decision to process further or to sell.
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