Question: please show work and answer Sell or Process Further, Basic Analysis Carleigh, Inc. is a pork processor: Its plants, located in the Midwest, produce several
Sell or Process Further, Basic Analysis Carleigh, Inc. is a pork processor: Its plants, located in the Midwest, produce several products from a common process: sirloin roasts, chops, sparents, and the residual The roasts, chops, and spareribs are packaged, branded, and sold to supermarkets. The residual consists of organ meats and leftover places that are sold to sausage and hot dog processors. The joint costs for a typical week are as follows: Direct materials $87.500 Direct labor 31,800 Overhead 26,500 The revenues from each product are as follows: sirloin roasts, 577,500; chops, 583,000 spareribs, 536,500; and residual $9,000 Cartelgh's management has learned that certain organ meats are a petred delicacy in Asia. They are considering separating those from the residual and selling them abroad for 654,200. Pois would bring the value of the residual down to $2,750. In addition, the organ meats would need to be packaged and then air freighted to Asla. Further processing cost per week is estimated to be $30,100 (the cost of renting additional packaging equipment, purchasing materials, and hiring additional direct labor), Transportation cost would be $11,500 per week. Finally, resource spending would need to be expanded for other activities as well (purchasing, receiving and interal shipping). The Increase in resource spending for these activities is estimated to be $2,850 per week. Required: 1. What is the grout profiteamed by the original mix of products for one week? 2. Should the company reparate the organ meats for shipment overseas or continue to sell them at split-of Separate the organ meats for shipment overseas What is the effect of the decision on weekly gross profit Ines try
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