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.

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

  • CreatedJanuary 15, 2015
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