Swine Enterprises produces hams from locally raised pigs. The cost of getting the meat ready for market is $1 per pound. Hams weigh an average of 12 pounds and sell for $1.50 per pound. The company can smoke the hams for an additional $0.50 per pound. The smoked hams would sell for $2.25 per pound.
Should the company smoke the hams? What if the selling price were $1.75 per pound?