Problem $13\mathrm{.}22($Algo$)$ Sell or Process Further Decision $[$LO$13-7]$

$($Prepared from a sltuation suggested by Professor John W$.$ Hardy.$)$ Lone Star Meat Packers is a major processor of beef and other

meat products. The company has a large amount of T$-$bone steak on hand and is deciding whether to sell the T$-$bone steaks as they

are initlally cut or process them further Into filet mignon and the New York cut.

If the T$-$bone steaks are sold as inltlally cut, the company figures a $1-$pound T$-$bone steak ylelds the following profit:

If the company further processes the T$-$bone steaks, then one $16-$ounce T$-$bone steak will yleld one $6-$ounce filet mignon, one $8-$ounce

New York cut, and two ounces of waste. It costs $$0\mathrm{.}19$ to further process one T$-$bone steak into the filet mignon and New York cuts. The

filet mignon can be sold for $$12\mathrm{.}00$ per pound, and the New York cut can be sold for $$9\mathrm{.}15$ per pound.

Required:

What is the financlal advantage $($disadvantage$)$ of further processing one T$-$bone steak Into filet mignon and New York cut steaks?

Would you recommend the T$-$bone steaks be sold as Inltially cut or processed further?

Complete this question by entering your answers in the tabs below.

What is the financial advantage $($disadvantage$)$ of further processing one T$-$bone steak into filet mignon and New York cut:

steaks?

Note: Do not round intermediate calculations, Round your answers to $2$ decimal places.

per unit