week 14 HOM Saved Help Save & Exit Submit Check my work 2 (Prepared from a situation suggested by Professor John W. Hardy.) Lone Star Meat Packers is a major processor of beet 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: 5 points $ 2.20 02:40:16 Selling price ($2.20 per pound) Legs joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product Profit per pound 1.50 $ 0.70 eBook References 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 $3.60 per pound, and the New York cut can be sold for $3.00 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the financial advantage (disadvantage) of further processing one T-bone steak into filet mignon and New York cut steaks? (Do not round intermediate calculations. Round your answers to 2 decimal places.) per unit MC Week 14 Homework Saved Help Save & Exit Submit Check my work 2 II LIIC TUULIC SCANS CIE DUIU CILICIT LUL, LIIC LUI Panny YuICS LIIOLO pourru IWOIIC SLCAR WUUU yiciu LIIC TVILUWITTY PIVIIL $ 2.20 Selling price ($2.20 per pound) Less joint costs incurred up to the split-off point where T-bone steak can be identified as a separate product Profit per pound 1.50 5 points $ 0.70 X 02:40:08 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 $3.50 per pound, and the New York cut can be sold for $3.00 per pound. eBook References 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Would you recommend that the T-bone steaks be sold as initially cut or processed further? OT-bone steaks should be processed further. OT-bone steaks should be sold as initially cut. Mc
