12.5 Dom 4 Save & Exit Prepared from a situation suggested by Professor John W Hardy) Lone Star Meat Packers is a major processor of beef and oftier 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 Tibone steak would yield the following profit Selling price ($2.00 per pound) Less joint costs incurred up to the split-off point where T-bone steak can be lantified as a separate product Prefit per pound $ 2,00 10.70 If the company were to further process the T-bone steaks, then cutting one side of a T-bone steak provides the flet mignon and cutting the other side provides the New York cut. One 16-ounce T-bone steak cut in this way will yield one 5-ounce filet mignon and one 8-ounce New York cut the remaining ounces are waste. It costs $0.15 to further process one T-bone steak into the filet mignon and New York cuts. The filet mignon can be sold for $4.40 per pound, and the New York cut can be sold for $310 per pound Required: t 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