Question: Utah Soy Products USP buys soybeans and processes them into

Utah Soy Products (USP) buys soybeans and processes them into other soy products. Each ton of soybeans that USP purchases for $ 400 can be converted for an additional $ 210 into 675 pounds of soy meal and 80 gallons of soy oil. A pound of soy meal can be sold at splitoff for $ 1.12 and soy oil can be sold in bulk for $ 4.50 per gallon. USP can process the 675 pounds of soy meal into 825 pounds of soy cookies at an additional cost of $ 380. Each pound of soy cookies can be sold for $ 2.12 per pound. The 80 gallons of soy oil can be packaged at a cost of $ 260 and made into 320 quarts of Soyola. Each quart of Soyola can be sold for $ 1.15.

Required
1. Should USP process each of the products further?
2. Describe a situation where the decision model might conflict with the performance- evaluation model?




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  • CreatedJanuary 15, 2015
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