Problem 12-20 Sell or Process Further [L012-7] (Prepared from a situation 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 it is trying to decide whether to sell the Tbone steaks as they are initially cut or to process them further into filet mignon and the New York cut If the Tbone steaks are sold as initially cut, the company figures that a 1-pound T-bone steak would yield the following profit 2.20 Selling price ($2.20 per pound) Less joint costs incurred up to the split-off point where 1.20 T-bone steak can be identified as a separate product 1.00 Profit per pound